TransRe marks 30 years in Europe with focus on innovation

As competition sharpens, TransRe aims to stand out with discipline, innovation and people power, says EMEA president Julien Mollinier.

Key points:
TransRe continues to invest in EMEA platform
Certain classes and territories offer strong growth potential
The risk landscape remains rich; discipline is crucial 

“We don’t expect to receive many gifts during the renewal season,” said Julien Mollinier, president of EMEA at TransRe. For him, the upcoming renewals season will be anything but straightforward. 

“The environment is likely to be a little more competitive, so we expect more complicated trading conditions overall,” he told Baden-Baden Today. Click here to watch the full video interview.

TransRe marks its 30th year in continental Europe at a time when the reinsurance market faces complex and shifting dynamics. The milestone underlines the importance of discipline, innovation and growth, and Mollinier emphasised that balance would be key: “The risk landscape remains very rich, and we would expect everybody to be reasonable and balanced.”

Casualty business is at the heart of TransRe’s global strategy, accounting for around 70% of the company’s premium income worldwide. The majority of exposures are in the U.S., and Mollinier explains that the goal has always been to try and diversify. Within EMEA, focus on regional business is the top priority, and to support that, the company appointed a new head of casualty for the EMEA region earlier this year.

Macroeconomic uncertainty also looms large. Asked about the interplay of inflation, interest rates and geopolitical volatility, Mollinier insisted on the need for discipline: “The excess of capital in the market is going to drive more competitive terms and conditions overall for 1/1.

“We tend to forget about the complexity of the current risk environment, so discipline shall remain at the core of everything we do.”  

Weather challenges, inflationary pressures and potential interest-rate reversals all require vigilance. Innovation provides another area of focus and Mollinier spoke of the transformational benefits and huge opportunities that came with AI. 

Many clients are already using the technology to cut costs and improve decision-making, and TransRe is following suit. “We’re investing in those technologies carefully but we think it’s a major opportunity to improve data ingestion to make better, quicker decisions and also drive efficiency.”

Yet AI brings its own risks, and Mollinier highlighted the need for legal frameworks and industry-wide awareness, warning against AI being like silent cyber. He feels companies should identify exposures, quantify potential risks and approach AI proactively, otherwise “we run the risk of waking up a little too late”.

Growth opportunities remain firmly on the agenda. Mollinier pointed to the Middle East, particularly Saudi Arabia, which is “booming from an economic standpoint”, and where TransRe has invested in new leadership to build its portfolio, as Mollinier firmly believes there will be opportunities in the future.

Regional casualty is another area of focus, as are structured solutions, where TransRe can leverage its AA+ financial strength to support capital-relief transactions. “We would like to be perceived as agile and part of the solution; as a partner that is going to provide answers and food for thought.”

“We want to run towards those risks. We don’t want to run away.”

Building a team capable of delivering on those ambitions has been a priority since Mollinier took on his role two years ago. “We are investing in the team. People make a difference in our industry. We want to have best-in-class underwriters,” he explained, adding that combining product expertise with strong market and cultural knowledge had been central.

“We have very different cultures in the region, so you need people able to speak different languages, to understand different legal frameworks.”

The approach is already paying off. TransRe’s premium income has grown over the past two years, and Mollinier sees more headroom. “We want brokers and cedants to realise TransRe is a reinsurer of choice in the EMEA region, and a player to partner with for the future.”

At the same time, casualty market dynamics in Europe present real challenges. Mollinier cited unusual severe losses in the motor sector, significant PFAS litigation risk and claims inflation spreading beyond the U.S. “We’ve had a series of severe motor claims, not bodily injury but physical damage. PFAS is a growing concern. Claims inflation is not U.S. specific –  it is happening in Europe as well.”

Yet far from shying away, Mollinier said TransRe embraces those risks. “We want to run towards those risks. We don’t want to run away. That’s our area of expertise. We are here to support clients and we want to help them quantify and address those challenges.”

Julien Mollinier is president of EMEA at TransRe. He can be reached at: jmollinier@transre.com.

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