Growth is a consequence, not a strategy: MS Re CEO

As reinsurers head into Monte Carlo for another crucial round of renewals, the conversation is once again dominated by familiar themes: falling rates, fresh capital and the pressure to maintain discipline in the face of softening conditions. But for MS Re, that’s not the main story.

Key points:
Transformation complete
Appetite to grow in reinsurance
2027 and beyond will be ‘interesting’

“We are not interested in only transactional, rate-driven relationships with our cedants; we’re interested in long-term partnerships,” Wiest told Monte Carlo Today. “That includes a fair and honest discussion about how much risk we can take and involves an appreciation of the value that we bring.” Click here to watch the full interview.

Defining the right clients

The key to that approach, he explained, is identifying “like-minded” cedants. “Like-minded means in our world a similar view on the underlying risk,” Wiest said. “Do we apply similar criteria? Do we have a similar philosophy when we approach risks? That’s one important element.”

Equally important is understanding where clients stand in their own cycle. “Some companies might need more support for a while; others have fewer challenges. We spend a lot of time trying to understand that,” he said.

The aim is to build relationships where there are no surprises. “No one likes it when a partner suddenly changes position or appetite,” he warned. “If you do things properly, with transparency and information sharing, you can usually go through the cycle without too many surprises.”

Value first, growth second

That stance has shaped MS Re’s growth path. The company has expanded over the past three years, but Wiest is clear this was never the plan in itself.

“We have appetite to grow in reinsurance, with the right set of clients.”

“Our strategy is not based on growth. Our strategy is based on creating sustainable value,” he said. “Over the last three years we have grown as a consequence of what we are doing. But it might very well be that the company will shrink at a certain point in time because we may struggle to create value. Growth for us is not a strategic value – it’s a consequence.”

“We have appetite to grow in reinsurance, with the right set of clients,” he added, stressing that expansion must be built on aligned partnerships, rather than market share for its own sake.

That distinction, he argued, means MS Re can commit fully to portfolios without overextending. “If we find the right client, we are willing to take a whole-portfolio approach, with the promise we don’t run away with the first loss,” he said. “Sustainability for us means sharing the risk in the most appropriate way with the right client, to deliver long-term profitability.”

This outlook has been underpinned by a two-and-a-half-year internal transformation at MS Re, covering systems, data and processes. But for Wiest, the real test is how clients perceive the company.

“The real measure is: are we creating value for clients? Are we relevant to them in their own portfolio? That is what matters,” he said.

The shift is clear, he argued. “We clearly moved from being a company that was known but not perceived as very relevant, to one that is now much more relevant. In some cases, we are on the lead panel of their reinsurance.”

To get there, MS Re focused on three principles: know your client, keep interactions simple and be realistic about value. As Wiest put it: “Sometimes the solution you bring is worth $1.10, sometimes only 80 cents. Don’t overdo it. Being realistic guarantees you a long-term position with that client.”

The road ahead

Asked about the outlook, Weist’s view is cautious but optimistic. “Clearly, the next two years – 2026 in particular – I’m looking forward to,” he said. “It will still be a positive year, geopolitics and geoeconomics excluded. But 2027 and beyond, that’s when it gets more interesting.”

“If you talk to MS Re, you will get a consistent story – unfortunately for journalists it’s the same story we’ve told for the last two years,” he quipped in conclusion. “But for us, consistency in the relationship with our clients is what really matters.”