Tailored Structured Solutions: Optimise your capital

New Business Financing

From inception, can  provide cash or cashless assets based on your underlying business, with repayment from emerging surplus. Includes upfront reinsurance commission and transfer of tail risk of profit emergence to Swiss Re.

Value Inforce  (VIF) Monetisation

Reinsurance can bear the risk of actual profit emergence by reinsuring underlying business through quota share coinsurance. Includes upfront reinsurance commission.

Reserve Relief

Customised reinsurance arrangements can address well-recognised conservatism in reserves and/or required capital, offering reserve credit (or reduction in liabilities, commonly referred to as reserve relief) or reduction in required capital. Examples include XXX Reserves in the US and ZZR in Germany.

Mass Lapse Cover

Non-proportional protection covering a loss layer between attachment and exhaustion point can be tailored to a client's book of business and required capital metrics, allowing for reinsurance recoveries in certain shock lapse scenarios over a period of 12 months.

Trend Lapse Cover

For protection against low lapses, a non-proportional arrangement can be constructed to cover adverse lapse development over a longer period of time for a so-called lapse-supported product.

Guaranteed Minimum Benefit Solutions (GMxB Reinsurance)

Applicable to variable annuity (VA) and variable life, including variable universal life (VUL) as well indexed products (IUL and FIA), reinsurance of riders covering insurance and financial market protection can reduce a direct writer's reserves and capital without the operational burden of a hedging program. To further optimise the solution, a so-called Index Provision can be employed that substitutes underlying funds with a simplified index.

Unit-linked / Separate Account Fee Reinsurance

The transfer of insurance and financial risk through modified coinsurance can be tailored to hedge exposure to market risk.

Modified Co-Insurance & Funds Withheld Co-Insurance

In certain jurisdictions, Modified Co-Insurance allows flexibility in the definition of the ModCo Interest Rate, enabling a tailored reinsurance solution for interest rate risk coverage. Or, for Funds Withheld Coinsurance, the client retains the Day 1 Reinsurance Premium but establishes a Funds Withheld Account, where the FWH account accrues a linked Floating Interest Rate and is amortised with the quota share of the underlying Portfolio Flows and a Reinsurance Charge.

Dynamic Risk Premium (DRP)

DRP adopts the format of standard risk premium reinsurance and adjusts the final premium for interest rate movements.

Asset-intensive coinsurance / Risk premium overlay

Swiss Re can enable better deals for insurers by complementing the capabilities of Asset Intensive Reinsurers to sharpen the overall price and enable greater risk taking of partners. Swiss Re can either transact in a consortium with the asset-specialised reinsurer or take out biometric risk in a separate transaction directly with the client.

Coinsurance of Inforce Blocks of Business with predominantly biometric risk exposure

For certain blocks of business, such as level premium term insurance, Swiss Re can provide attractive terms for indemnity coinsurance of insurance liabilities. By transferring the economics of the business to the reinsurer, indemnity coinsurance can free up capital and, depending on the profile of the block, can allow a ceding company to realize the value in the block on an accelerated basis via a ceding commission.