While the company s underwriting risks
remained stable, its capital position increased by around 30% to AUD 15 million in the five years to June 2012, helping Pacific to build up a buffer against stresses.
The trading of underwriting risk
via a futures market represents a departure from the bilateral trade of underwriting risks
typically observed in the reinsurance market to the anonymous trading of a contingent claims market.
Additionally, they are somewhat more flexible as to the underwriting risks
which they are willing to accept.
The name change is a sound business decision, which will permit us to expand our base, spread our underwriting risks
and preserve the heritage of our company," says Wulf.
The ratings reflect Max Re's disciplined and flexible approach to underwriting risks
, limited investment portfolio downside risk, and favorable parent company financial flexibility.
This follows a return to technical profits at year-end 2003 as the company maintains its technical underwriting discipline, selectively underwriting risks
such as yachts and general aviation.
Because the company does not engage in underwriting activities, it does not assume underwriting risks
Best's view, and despite the collective risks that expose individual companies to potential shortfalls, the property/casualty industry in total maintains capitalization that adequately supports its asset, credit and underwriting risks
, in aggregate.
Prior to 2003, the plan operated unprofitably in the commercial and Medicare+Choice businesses because the quality of supporting systems utilized to predict and manage underwriting risks
This growing correlation is driven by the shift in mix toward products that are primarily spread-based and/or equity-based, and away from traditional underwriting risks
Offsetting factors include the potential negative impact of recent financial difficulties on the group's business position, and concerns over SCOR's ability to control and monitor certain underwriting risks
These strengths are counterbalanced by the underwriting risks
in the company's overseas exposure," said Standard & Poor's analyst Connie Wong.