Hannover Re to leave panel in 2013
UK motor insurer has added two new reinsurers – Spain’s Mapfre Re and Bermuda’s XL Re – to its panel from 2011 to 2013.
Admiral has also extended the relationships with its existing reinsurers until 2013.
XL Re will assume 2.5% of Admiral’s total written premiums on a quota-share basis for the three years, while Mapfre Re will assume 2.5% in 2011 and 3% for the remaining two years.
Admiral said the two new arrangements, including profit commission terms, are similar to the current arrangements with New Re and Hannover Re.
These arrangements add to the existing 45% co-insurance agreement with Munich Re and the quota-share arrangements with New Re, Hannover Re and Swiss Re.
The extended reinsurance agreements also include a 'flexible option' under which Admiral can cede 8.75% of its total premiums between New Re, Hannover Re and/or XL Re in 2013.
From 2011 to 2013, Munich Re's share of Admiral's total premium will fall to 40%. Hannover Re's share will decline to 8.75% in 2011 and 2012 from 10% in 2010, and the reinsurer will not participate at all in 2013.
New Re's share will increase to 11.25% in 2011 from 10% in 2010, and will rise to 13.25 for 2012 and 2013.
Swiss Re's share will remain static at 7.5%.