Admiral Group has signed new reinsurance contracts with Swiss Re and Partner Re...
Admiral has extended its long-term coinsurance arrangement with Great Lakes Reinsurance (UK), a subsidiary of Munich Re. Admiral has also signed new reinsurance contracts with Swiss Re and Partner Re.
Great Lakes currently underwrites 65% of Admiral's UK private motor business. This percentage will decline by 5 percentage points each year from 2007 to 2011 inclusive, so that in 2011 and thereafter 40% of Admiral's UK car insurance premiums will be underwritten by Great Lakes.
Admiral also signed a five-year quota share contract with Swiss Re and a two-year quota share contract with Partner Re. Swiss Re will reinsure 10% of Admiral's UK car insurance premium in 2007 to 2009 inclusive, and have an option to reinsure 7.5% and 5% in 2010 and 2011. Partner Re will reinsure 7.5% of Admiral's UK car insurance premium in 2007 and 2008.
Commenting on the extended contract, Admiral's Chief Executive Henry Engelhardt, said, “Admiral's use of coinsurance and reinsurance support has helped us combine rapid growth with cash generation and significant dividend payments. In addition, it has helped us to provide our shareholders with a higher quality, lower risk profit stream by providing some protection against the underwriting cycle.”
