Saga signs new reinsurance agreement with NewRe, Hannover Re
Source - SMW
Insurance group Saga said it had signed a new quota share arrangement with NewRe and Hannover Re to cover 80% of the underwriting risk of motor policies at its in-house underwriter AICL.
The agreement added Hannover Re to the company's current reinsurance partner NewRe, and replaced an existing quota share arrangement due to expire on 31 January 2019.
The new agreement provided three years of cover on a rolling basis, Saga said.
Trading, meanwhile, continued to be in line guidance provided by the company in December.
Lance Batchelor, Chief Executive Officer, said: 'The new quota share arrangement and the addition of Hannover Re as a partner provides further evidence of the stability and high quality of our underwriting business.'
'The increase to 80% in the reinsured share of our in-house underwriter's motor policy risk continues to reduce Saga's exposure to underwriting risk which allows the Group to maintain its efficient capital structure.'