Allianz eyes tweaks to reinsurance strategy following review

Allianz will make only minor adjustments to its reinsurance buying strategy, following a review, despite the rate increases it is experiencing, chief financial officer Giulio Terzariol (pictured) told an investor call today (Wednesday, Nov 10).

Overall, its reinsurance strategy will remain unchanged, he said. “We concluded our programme is pretty good,” Terzariol said of a recent study of the group’s reinsurance structures. “We are comfortable.”

Increases in reinsurance rates prompted the reinsurer to conduct a review of its reinsurance programme and the structures it uses. That could trigger some minor adjustments to terms, he indicated.

“There will be an increase in premiums coming our way, so we look at different structures,” he said, citing the terms on attachments and capacity. “But fundamentally, we aren’t changing our reinsurance structure.”

Allianz’s size and market position will afford it better pricing than smaller competitors, the CFO believes.

“We do expect to see some increases but, since we are a good account, the increase should be more moderate. These are increases we put into our calculations for our premiums,” Terzariol said.

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