NewRe seeks non-Europe P&C growth
New Reinsurance Company (NewRe) is eyeing significant growth potential outside the subdued European traditional property/casualty (P&C) segment, especially in life business, weather risk and structured solutions, Renate Strasser, chief executive of NewRe, told Baden-Baden Today.
“It’s difficult to grow in the traditional P&C segment in Europe. We are aiming for profitable growth, and as the current rate environment is quite challenging, we are very selective,” Strasser said.
In traditional P&C NewRe, a subsidiary of Munich Re, focuses on clients that are based in Europe. The reinsurer underwrites the major classes of traditional non-life reinsurance treaty business. In other segments the reinsurer operates worldwide.
Founded in Zurich in 1926, NewRe became part of the Munich Re Group in 1988. In addition to traditional P&C business the reinsurer develops structured solutions for the specific needs of commercial clients and offers insurance derivatives and parametric trigger covers for weather risk management, also for corporate clients.
In life reinsurance, NewRe offers tailor-made value propositions mainly in the fields of variable annuity and life financing business.
“We see a lot of growth opportunities in various fields, particularly on the life side and in weather risk cover. We see a lot of interest in our structured business, including the P&C side of it,” Strasser said.
“We benefit from a cross-functional approach. We get interest from clients in the P&C side asking for weather topics, which differentiates us from other P&C carriers.”
Initially tailored to the traditional energy industry, NewRe’s weather risk management products have evolved and now enable more sophisticated weather risk management solutions for renewable energies, agriculture, food and beverage, automotive and retail industries, protecting these sectors from earnings volatility.
“Our weather team creates tailor-made solutions with hedging instruments,” Strasser said.
“Our data scientists work closely with experts from the Munich Re Group to leverage their knowledge.”
Demand for reinsurance is being driven by clients seeking capital optimisation and solvency relief, Strasser explained.
NewRe believes its diverse workforce helps it better grasp clients’ demands. “For French clients, for example, we have underwriters speaking the language. This is very helpful as the business is often personally driven,” Strasser explained.
NewRe leverages the expertise of Munich Re’s Capital Partners, which focuses on alternative risk transfer solutions.
Its clients also appreciate the company’s transaction-driven approach and quick decision-making processes, Strasser noted.
“This is really valued from a broker perspective and of course, also by clients,” she said.
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