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Life Reinsurance Assumed Remained Steady

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Ordinary reinsurance in force grew to $5.65 trillion last year

By Jim Connolly

Total U.S. ordinary reinsurance assumed has remained relatively constant, according to several years of data culled from an annual survey jointly sponsored by Munich American Reassurance Corp., Atlanta, and the Society of Actuaries, Schaumburg, Ill.

In 2003, total ordinary reinsurance assumed was $1.29 trillion compared with a $1.3 trillion total in 2002. The corresponding figures for prior years were $1.54 trillion in 2001, $1.19 trillion in 2000, and $980.2 billion in 1999.

Among the changes that occurred in the 2003 survey was the merging of the totals for Allianz Life Insurance Company of North America and Reinsurance Group of America. In December 2003, RGA completed the purchase of the life reinsurance business of Allianz. In 2002, Allianz posted total reinsurance assumed of $54.8 billion and RGA, $138.3 billion. In 2003, the combined production was $197.4 billion including $71 billion in production from Allianz.

Other significant changes, according to the survey, include sizeable increases in totals of reinsurance assumed by ING Re and Munich American Re. For ING Re, the total climbed to $167 billion in 2003 compared with $144.2 billion in 2002. Munich American Re experienced growth that increased total ordinary reinsurance assumed to $118.5 billion in 2003 from $90.6 billion in 2002.

Employers Reinsurance Corp. and Annuity and Life Re registered declines in total ordinary reinsurance assumed. For ERC, total ordinary reinsurance assumed fell to $34.2 billion in 2003 from $200.1 billion in 2002. Annuity and Life Res total dropped to $3.5 billion in 2003 from $56.7 billion in 2002.

U.S. ordinary reinsurance in force grew to $5.65 trillion in 2003 compared with $5.19 trillion in 2002. In 2001, ordinary reinsurance in force increased to $4.47 billion. In 2000, it totaled $3.89 billion, and in 1999 it was $3.17 billion.

For Scottish Re and SCOR Life Re, total reinsurance in force grew by a respective 310.77% and 110.59%. Scottish Res total reinsurance in force grew to $272.2 billion in 2003 from $66.3 billion in 2002. For SCOR Life Re, total reinsurance in force rose to $71.4 billion in 2003 from $33.9 billion in 2002.

In 2003, RGA had $895.6 billion of reinsurance in force, which included $278 billion of Allianzs in-force business. In 2002, RGA had a total of $560.7 billion and Allianz, a total of $229.3 billion.

Reproduced from National Underwriter Edition, October 21, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.


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