Klapton Reinsurance Limited

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Klapton Reinsurance Limited (2022-04)
  • Klapton Reinsurance Limited
  • Year : Apr 2022
3 Tokens
USD 300.00
Summary

Premium diversification takes into consideration expectations of three existing hubs reallocating more than 80% of the a reinsurer’s existing treaty and facultative business from a related party insurer to Klapton Re. The hubs receive cedant premiums from more than 80 countries, primarily from South Asia. The reinsurer is expected to drive both the facultative and treaty business across the markets beginning FY22, with two lines of business projected to contribute materially to GWP. While geographic diversification is viewed to be strong, we expect more than 50% of premiums forecast to remain reliant on one hub over the medium-term.

Additional Information

The Stable Outlooks reflect our expectations of the entity’s domestic market share registering between 1% to 2% while sustaining its moderately high levels of premium diversification, though concentrated within a single hub. No material changes are expected from the current shareholding and board structure. Positive rating action could ensue should the entity register better liquidity levels than anticipated, with the liquidity ratio registering above 1.4x. Furthermore, internal capital growth beyond expected levels could also be viewed positively as other credit metrics are sustained within similar bands.

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