MS Amlin filters market noise, doubles down on reinsurance strategy

Lloyd’s global re/insurer MS Amlin is holding firm to a disciplined reinsurance strategy, resisting the pull of short-term market shifts despite a more fluid and capacity-rich environment.

Newly appointed head of outwards reinsurance Sarah Wilson (pictured) said the insurer remains focused on long-term priorities rather than reacting to changing sentiment or pricing noise.

“There’s often a lot of noise in the market, but as a buyer you need to filter that noise and stick to your strategy,” she told Intelligent Insurer.

Wilson, , who has spent three and a half years in MS Amlin’s outwards function and now leads it fully, emphasised that the company’s approach is rooted in strategic planning, with any adjustments driven by underlying portfolio changes rather than market conditions. “We will buy additional protection if the portfolio changes materially. Again, it comes back to strategic rather than tactical thinking. We won’t be governed by market noise.”

The insurer’s programme remains centred on balance sheet protection against large, infrequent losses, rather than smoothing attritional volatility. “The majority of our purchases focus on protecting the balance sheet against high-severity losses, taking out the spikes rather than smoothing frequent losses. That approach reflects our confidence in the underlying portfolio and in the capital support from MS&AD,” she said.

A more favourable buying environment at the January 1 renewals also played to MS Amlin’s advantage, with abundant capacity shifting the balance towards buyers. “There was so much capacity available that we could buy what we wanted, rather than what people were trying to sell us,” Wilson said.

Pricing, she added, was approached pragmatically. “If price reductions were justified, we pushed for them. If they weren’t, we were happy to pay what the market thought was appropriate. It was a balance between the two, ensuring our protection aligns with the risk in our portfolio.”

Despite the influx of capital into the market, MS Amlin has opted for continuity over opportunism when selecting reinsurance partners. “We always try to remain open-minded because the market evolves and new sources of capital appear. However, we prefer long-term partners and consistency rather than chasing the newest or cheapest capital source. We remember who supported us in 2023 when capacity was limited.”

That emphasis on partnership extends beyond financial strength to collaboration and understanding. “Reinsurance is ultimately a promise to pay,” she said. “We want a strong panel of reinsurers behind us, not just in terms of ratings, but also in terms of the value they bring. We look for partners who listen to our plans, understand our portfolio, and work with us to structure programmes appropriately.”

With nearly 25 years in the market, Wilson said experience has reinforced the need for consistency through cycles. “Having been in the market for nearly 25 years, I’ve seen the cycles. You have to hold your nerve and stay consistent rather than chasing the cheapest coverage or reacting to every market shift.”

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