UK's Saga strikes reinsurance deal with Hannover Re

Saga, a UK-based specialist insurer for life after 50, has entered into a new quota share arrangement with German insurer Hannover Re as well as with its current reinsurance partner NewRe, part of the Munich Re Group.

The new agreement will cover 80 percent of the underwriting risk of motor policies of the group's in-house underwriter AICL, to take effect from Feb.1, 2019, the company said in a Feb. 12 statement. It provides Saga with three years of cover on a rolling basis, with the current one expiring on Jan. 31, 2019.

Saga CEO Lance Batchelor, said: "The new quota share arrangement and the addition of Hannover Re as a partner provides further evidence of the stability and high quality of our underwriting business."

Saga stated that the increase of its quota share arrangement from 75 percent to 80 percent share is in line with the group's overall strategy and further reduces our exposure to underwriting risk. This will continue to support the withdrawal of capital from the underwriter.

"The increase to 80 percent in the reinsured share of our in-house underwriter's motor policy risk continues to reduce Saga's exposure to underwriting risk which allows the Group to maintain its efficient capital structure," Batchelor added.

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