Reinsurer secured pandemic protection before Covid-19 crisis – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Reinsurer secured pandemic protection before Covid-19 crisis

First Prev 1 2 Next Last
Thomas Olunloyo, CEO of Legal & General Reinsurance (Photograph supplied)
Thomas Olunloyo, CEO of Legal & General Reinsurance (Photograph supplied)

The world was caught unprepared by the Covid-19 pandemic, however a Bermudian-based reinsurer secured some pandemic coverage protection only weeks before the coronavirus health emergency unfolded.

Legal & General Reinsurance took steps that protected a portfolio of its business against global pandemics. It did so at the end of 2019, not knowing what was just around the corner. The risk management strategy proved to be timely.

It also led to L&G Re, which has its offices in Par-la-Ville Road, being awarded the Life Transaction of the Year award from Trading Life Magazine.

L&G Re had its insurer financial strength upgraded in October from “A+” to “AA-” by Fitch Ratings. And this month rating agency Standard & Poor’s upgraded the reinsurer’s long-term financial strength rating from “A+” to “AA-”.

Thomas Olunloyo, chief executive officer of L&G Re, said: “I am delighted that we have been upgraded by S&P, demonstrating the continued strength of our business. There was no way we could have known that the pandemic would occur when it did, however it was a potential risk we thought deeply about as part of our risk management approach. Our first priority is to our customers therefore anticipating potential threats and taking appropriate action to protect their interests is very important to me; this approach also ensures that our business continues to perform strongly in the long term.”

L&G Re’s adverse mortality stop loss cover, which went into effect in December 2019, protected its US portfolio of mortality business against a global pandemic. The reinsurer worked with Aon Reinsurance Solutions (UK) on the policy, which went into effect in December 2019.

The following month the World Health Organisation declared Covid-19 a public health emergency of international concern, before declaring it a pandemic in March.

Announcing the ratings upgrade this month, S&P also said: “Since L&G Re was formed in 2014, it has become an integral part of the Legal & General group's reinsurance strategy and S&P now considers L&G Re to be a core component of the group.”

Similarly, in October, Fitch Ratings upgraded L&G Re’s strategic importance [to the group] from “very important” to “core.”

You must be registered or signed-in to post comment or to vote.

Published February 09, 2021 at 8:00 am (Updated February 10, 2021 at 12:26 pm)

Reinsurer secured pandemic protection before Covid-19 crisis

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon