New Re to take reduced share of risk from 2015

Motor insurer Admiral has secured cover from four of its key reinsurers until at least the end of 2016.

However, New Re will reduce its share from 2015.

Hannover Re, Mapfre Re, New Re and Swiss Re have agreed to continue taking a share of Admiral’s UK motor book.

The extended agreements are in addition to the current arrangement with Munich Re, Admiral’s main reinsurer, which runs to at least the end of 2018.

Reduced share

Under the arrangements, Admiral will continue to retain 25% of its risk for 2014, 2015 and 2016, with Munich Re still taking the biggest share, at 40%.

The only change to the structure is that in 2015 and 2016, New Re’s share will drop to 12.25%. Mapfre Re will pick up the slack, increasing its share to 5% in 2015 and 2016 from 4% in 2014.

Admiral chief executive Henry Engelhardt said: “We are very pleased to announce extensions to our long-standing reinsurance arrangements. These agreements show our partners’ continued confidence in our business and we look forward to working with them for many years to come.”