Why Reinsure

Organizations reinsure for a variety of reasons.

There are a number of reasons why insurers decide to sell or reinsure run-off books of businesses:

  • Release capital
  • Address regulatory or rating agency issues
  • Exit insurance lines with low profitability and/or low growth
  • Discontinue strategically unattractive parts of acquisitions
  • Limit the level of management distraction in operating non-core businesses
  • Manage claim volatility in results
  • Achieve finality by selling or reinsuring liabilities