Asset Intensive Reinsurance Ceded Offshore from U.S. Life Insurers (with focus on Bermuda)

May not be reproduced without express permission. [...] May not be reproduced without express permission. [...] May not be reproduced without express permission. [...] 22 requires consideration of any cash flow differences • Still important to consider counterparty risk Assess • Important regardless of the AAT method counterparty • Reinsurance receivable is the asset being tested for adequacy risk • Consider reinsurer credit rating, default and recovery probabilities, and specifics of the reinsurance program © 2024 American Academy of Actuaries. [...] Retrocession 9 • Common in the reinsurance industry • Bermuda Monitory Authority (BMA) monitors this and may correspond with home regulator • Treaty terms may require disclosure, but unusual • Management of the risk by the cedant includes: Insolvency considerations Disclosure requirements Relationship management Risk diversification © 2024 American Academy of Actuaries.