Munich Re US Review 2024 (Updated)

Munich Re America Corporation is the holding company for various reinsurance and insurance entities which provide reinsurance, insurance and related services to insurance companies, commercial businesses, government agencies, and self-insurers in the United States. Munich Reinsurance America Inc. is the holding company’s principal subsidiary. Based in Delaware and founded in 1917, Munich Reinsurance America Inc. primarily underwrites property and casualty reinsurance.

Other subsidiaries of Munich Re America Corporation include American Alternative Insurance Corporation (AAIC), The Princeton Excess & Surplus Lines Insurance Company (PESLIC) and Bridgeway Insurance Company (BIC).

AAIC is an insurance company domiciled in the state of Delaware and is an admitted insurer in all 50 states and the District of Columbia. PESLIC is a Delaware domestic surplus lines insurer and operates on a surplus lines basis in all states and the District of Columbia. BIC is domiciled in Delaware and is eligible to write insurance on a non-admitted basis in all states.

Here, you will find combined statutory financial highlights and ratings for Munich Re America Corporation. In addition, we have made full-year GAAP financial reports available in PDF format for the holding company, Munich Re America Corporation. Finally, you can read information about the holding company’s outstanding Senior Notes.

Key Figures

We offer superior reinsurance capacity to meet your risk transfer needs. We have over $4.4bn in statutory surplus and over $20.8bn in high-quality assets to provide our clients with outstanding balance sheet strength, stability and the liquidity to pay claims promptly. Our financial strength is recognized by the leading rating agencies.

With approximately $7.7bn in annual gross written premiums in 2021, we are one of the largest reinsurers in the U.S. We have both the resources and broad risk appetite to deliver reinsurance and risk transfer solutions to help your company succeed.

Security Holder Information
Information for holders of Munich Re America Corporation Senior Notes

At 31 December 2021, Munich Re America Corporation (the “Company”) had US$ 333.8m aggregate principal amount of Senior Notes due 15 December 2026 outstanding (the “Notes”). The Notes bear interest at a rate of 7.45% annually, payable on 15 June and 15 December each year. The Notes are redeemable in whole or in part, at the option of the Company at any time, at a redemption price equal to the greater of (i) 100% of the principal amount of such notes and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semiannual basis, at the rate per annum equal to the yield to maturity of the United States Treasury securities issue with comparable maturities to the remaining term of the Notes, plus 15 basis points, together with accrued interest to the date of redemption.

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The Indenture contains certain covenants, including, but not limited to, covenants imposing limitations on liens, and restrictions on mergers and sale of assets. The Notes are not registered under the Federal Securities Act of 1933 or registered or qualified under the securities laws of the various states. The Company may, from time to time, redeem all or part of its 7.45% Senior Notes due 2026 pursuant to the terms of the indenture under which the Notes were issued, or purchase them in privately negotiated transactions, tender offers or otherwise.

About Munich Reinsurance America, Inc. (Property & Casualty Insurance)

As a member of Munich Re’s US organization, we offer clients the financial strength and stability that comes with being part of the world’s preeminent insurance and reinsurance brand. Our risk experts work together to assemble the right mix of products and services to help you stay competitive – from traditional reinsurance coverages, to niche and specialty reinsurance and insurance products.

We analyze risks from a variety of different angles and deliver holistic insurance solutions. We work with interdisciplinary teams throughout Munich Re and its network of external experts to constantly analyze technological, social and legal developments, identifying trends, considering future scenarios, and ensuring our competence continues to grow. That is how forward-looking solutions for tomorrow’s world are born. If your passion is to do exceptional things, and you are looking for a company that values your contributions, promotes value-oriented culture and rewards performance with opportunities for skill development and career advancement, then join our team. Experience a unique diversity of individual skills, challenging tasks, and what it means to always be a step ahead due to our ambitious and appreciative work environment.

MUNICH REINSURANCE AMERICA, INC. DIVERSITY

9.9

Diversity Score

We calculated Munich Reinsurance America, Inc.’s diversity score by measuring multiple factors, including the ethnic background, gender identity, and language skills of Munich Reinsurance America, Inc.’s workforce.

Munich Reinsurance America, Inc. diversity summary. Zippia estimates Munich Reinsurance America, Inc.’s demographics and statistics using a database of 30 million profiles. Zippia verifies estimates with BLS, Census, and current job openings data for accuracy. We calculated Munich Reinsurance America, Inc.’s diversity score by measuring multiple factors, including the ethnic background, gender identity, and language skills of Munich Reinsurance America, Inc.’s workforce.

• Munich Reinsurance America, Inc. has 1,450 employees.
• 46% of Munich Reinsurance America, Inc. employees are women, while 54% are men.
• The most common ethnicity at Munich Reinsurance America, Inc. is White (53%).
• 19% of Munich Reinsurance America, Inc. employees are Asian.
• 13% of Munich Reinsurance America, Inc. employees are Hispanic or Latino.
• The average employee at Munich Reinsurance America, Inc. makes $82,782 per year.
• Munich Reinsurance America, Inc. employees are most likely to be members of the democratic party.
• Employees at Munich Reinsurance America, Inc. stay with the company for 5.5 years on average.

“We are proud to have achieved industry topping STP rates while limiting mortality cost,” said Brooke Tyson, 2nd VP of Operations, Munich Re Life US. “By integrating alitheia with leading technology from partners like PSG, we are enabling life insurance carriers and distributors to grow their business while bringing life insurance to more people. We will continue to leverage alitheia’s cutting-edge capabilities to transform the future of risk assessment.”

The combined solution of alitheia and eValuate PLUSis highly adaptable to different products, distribution channels, and target markets. It brings the benefit from of alitheia’s best-in-class rules, machine learning models, and data provider integrations to produce instant decisions that enable life insurance carriers to underwrite new policies with more confidence and at greater speed and scale and streamline the life insurance purchasing journey.

“The combination of alitheia and PSG’s eValuate PLUS provides a powerful solution for life insurers looking to automate their underwriting and, at the same time, improve their customer and agent experiences,” said Jeff McCauley, President of PSG. “What we have created with Munich Re is a truly modern and interconnected process that has been tested by large agencies for validation and will drive life insurance sales through a seamless seller-buyer approach.”

Designed for its life insurance customers, this solution helps carriers:

• Make faster decisions. This integrated solution leverages the best technology from alitheia and eValuate PLUS, to help carriers achieve higher STP rates – ultimately helping carriers grow businesses by issuing more policies instantly.
• Modernize the consumer buying experience. It dramatically shortens the application process and ensures an easy buying experience for the consumer, making life insurance more accessible and comprehensive for more people.
• Accelerate with confidence given built-in access to reinsurance. Munich Re stands behind alitheia and automatically reinsures policyholders whose underwriting decisions were made using the system.
• Seamlessly integrate with current systems/fast deployment: alitheia is highly adaptable and integrates easily with carrier front and backend systems.

This transformative solution frees up resources, allowing life insurance carriers and distributors to focus efforts on cases of greater complexity. In partnership with Munich Re, life insurance carriers can help build a society where more people are insured with the confidence of an accelerated, reliable and precise risk assessment.

About Munich Re Life US
As one of the world’s leading life reinsurers, Munich Re Life US partners with insurance carriers to leverage smart and connected data, embrace new ideas and technologies, help carriers make confident decisions at speed and scale, and gain an exponential understanding of underlying risks. The company is well known in the industry as an innovation leader with extensive technical depth. Munich Re Life US’ optimized solutions and capital management expertise expand beyond market leading offerings in individual life reinsurance, group, individual disability and living benefits, to a global center for predictive analytics, automated underwriting, digital partnerships and standard-setting underwriting and medical capabilities. The company believes that the digital economy offers an unprecedented opportunity for the industry to rapidly advance risk assessment and help close the widening global underinsured gap.

Munich Re Life US, incorporated as Munich American Reassurance Company, is a subsidiary of Münchener Rückversicherungs- Gesellschaft Aktiengesellschaft in München (“Munich Re”). It has high ratings for financial strength from A.M. Best Company and Standards & Poors. Munich Re Life US serves clients throughout the United States from its two locations in New York and Atlanta.

About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.

About Paperless Solutions Group (PSG)
PSG, an MIB business, is a leading provider of cloud-based software solutions for the life insurance and financial services industry. Our products and services provide unparalleled automation and integration for the insurance services industry. These innovative offerings conduct millions of transactions annually by enabling the presale, new business and underwriting, point of sale, and post-sale support. Paperless Solutions Group is a part of the MIB Digital Solutions portfolio. To learn more about PSG, please visit www.psginc.co

Munich Re is launching a new division, called Global Specialty Insurance (GSI), which will be comprised of various primary insurance businesses from the group that are currently part of the reinsurance segment.

The restructuring, effective on Jan. 1, 2023, will not affect ERGO, the company’s primary insurance division.

GSI will be headed by Michael Kerner (57 years old), who was recently appointed to the Board of Management.

Munich Re said the aim of the restructuring is to continue “to support the very good business performance” seen by its primary insurance businesses, while driving further expansion in specialty primary insurance business.

The new GSI division mainly comprises business units from the risk solutions field, such as American Modern Insurance Group (AMIG), HSB, Munich Re Specialty Insurance, Munich Re Syndicate and Aerospace as well as Great Lakes Insurance (GLISE).

In the course of the integration, premium volume is projected to increase from around €7.5 billion ($8 billion) at present to almost €10 billion ($10.6 billion) by 2025, in line with the company’s “Ambition 2025” strategy. (With Ambition 2025 Munich Re aims to generate a high return on equity of between 12% and 14% by 2025.)

Kerner, a U.S. citizen, joined Munich Re in December 2018 and has been responsible for Munich Re Specialty Insurance in North America. He has more than 30 years of experience in the global insurance industry.

As part of our Excess & Surplus offering, Munich Re Specialty Insurance delivers commercial property coverage for unique, hard-to-place risks in North America. Our broad risk appetite and underwriting expertise allows us to offer a broad array of insurance solutions for everyday commercial risks as well as disaster-related impacts. We also have the capability to respond quickly, creatively, and flexibly to market cycles.

Coverage details

• Specifically tailored for individual risks
• Forms: ISO-based and manuscript
• $25MM capacity per risk
• $10K minimum AOP deductible
• $25K minimum flood/earthquake deductible in each occurrence
• $25K minimum premium
• $500MM maximum total account insured value
• Coverage enhancement and broadening forms available
• Equipment Breakdown coverage — TechAdvantage^TM
• Monoline flood/earthquake and DIC coverage
• Coverage available for town protection classes 7-10
• Shared and layered capacity
• Deductible buyback coverage
• Policies available: 100% ground up, primary, quota share, and excess
• Exclusions: fronting, reinsurance of captives or risk pools, facultative reinsurance

_{E&S coverage is available through our select broker distribution network.}

Target classes

_{Excluded classes: dealers open lot, stock throughput, ocean or inland marine, builders risk, cannabis, pharma, primary habitational of frame construction, chemical blending, petrochemicals, crop growing, energy production, fertilizer manufacturing/distribution/storage, livestock, flammable liquid workers}

Claims scenarios

A shipyard located in an evacuation zone was required to move some of their sensitive equipment in preparation for an imminent storm. Because the company had comprehensive property insurance tailored to its needs, they had complete insurance coverage for the relocation of the equipment.

A hotel was destroyed by a hurricane. Since the hotel had property insurance, they were covered for loss of business income and cost to remove debris and rebuild, as well as cost to replace damaged business equipment.

The main electrical switchgear for a building experienced electrical arcing. Staff sprayed chemical fire extinguishers on it to prevent fire, but this did not stop the arcing. The switchgear and cabling were destroyed, requiring complete replacement. Since the building owner had Equipment Breakdown coverage, the $90,000 cost of replacement was covered.

Munich Re appoints Champion as managing director specialty UK

Munich Re Specialty Group (MRSG) has appointed Danielle Champion as managing director for specialty insurance in the UK.

Champion will be responsible for developing a sustainable future for the MRSG brands, which include NMU, GJW Direct and GrovesJohnWestrup private clients.

She brings more than 10 years of cross-industry experience in underwriting, claims, operations and transformation, most recently serving as CEO of Thomas Miller Specialty.

Prior to that, she worked at Tokio Marine Kiln as a UK operations officer.