Generali adds a touch of net exposure at 1.1, can outmuscle rivals
European insurance group Generali “broadly confirmed” the shape and size of its reinsurance programme at the 1.1 renewals, but took select increases in attachment points and the like which could improve its competitive position vis-à-vis rivals who remain comparatively tied to reinsurance, company officials have argued.
“The structure of the reinsurance is broadly confirmed,” Marco Sesana, group general manager, told analysts during a Q&A at his company’s investor day. “Capacity was there,” he said of a renewal that proceeded much easier than in the year-prior, despite some market belief that Italy had lagged the broader market in the 2023 reinsurance reset.
But net exposure was allowed to rise. In a rattled-off answer, Sesana cited a €100 million increase in retention on one unspecified cat program to €300 million, a new retention on the per risk cat treaty, and a confirmed attachment point of €800 million but a new trigger on an aggregate cat treaty where 60% of the program was placed, also matching the prior year.
The increased net exposures following the 1.1.2024 renewal is a reasonable match to the growing size of the group balance sheet, Sesana argued.
“These changes are also reflecting the fact that we increase our portfolio, so this growth of the P&C portfolio is also bringing us more capacity to absorb some risk and so we are also increasing some attachment points,” Sesana explained.
The upshot of soaring reinsurance costs, a rough 2023 nat cat year in Italy and Generali’s ability to wean itself from reinsurance vis-à-vis rivals should mean a better competitive position in Italy and beyond, Sesana suggested.
“I do think there is an opportunity to increase our overall premium,” Sesana said, “to make sure our clients are protected and to also to show how important it is, even for an Italian client, to be insured with an internationally diversified portfolio.”
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