GLRE - ILS Offered 'More Competitive Terms' Than Traditional Reinsurance: Generali
Insurance giant Generali Group (ARZGF) (ARZGY) said in its annual report that while it has historically preferred protection from traditional reinsurance sources, in some cases, it has found that insurance-linked securities ((ILS)) has offered "more competitive terms," suggesting the insurer may seek to increase its use of ILS going forwards.
Generali explained that it sees reinsurance as "the key mitigating technique for balancing the P&C portfolio" which historically has involved use of traditional reinsurance counterparties.
But importantly, Generali explains its strategy with leveraging reinsurance, saying that it optimises its own use of risk capital by