The Company’s conservative underwriting strategy favors reinsurance policies with predictable and low severity claim risk and capped liabilities. Examples of typical policies include workers compensation, healthcare benefits, professional liability, and auto warranties.
The process of evaluating policies includes performing underwriting assessment, actuarial studies, claims review and financial audits. These reviews result in economic projections of premiums, claims, expenses, combined ratio, maximum possible and probable losses, and returns on allocated risk capital. Financial, credit and legal reviews of proposed transactions are completed with final risk transfer shifting and distribution adequacy review. A portfolio assessment is undertaken on a regular basis.