Large losses have reduced Reinsurance Australia’s capital to the point that it no longer meets the requirements for its Australian reinsurance license, thus forcing the company to formally stop writing new business.
Re-Australia estimated the 1999 net loss at Aus $470 million, leaving it with net assets of $50 million.
The company made it clear in January that it would lose a large amount in 1999. As a result, A.M. Best downgraded Reinsurance Australia’s ratings, creating speculation that the company would run off its reinsurance book.
Topics Profit Loss Reinsurance Australia
Was this article valuable?
Here are more articles you may enjoy.
Hot Sauce Company Sues Manufacturer Over Exploding Bottles 
Insurtech Lemonade Starts Autonomous Car Product With Tesla’s Data 
Florida Board Drafting Rules That Could Stem Bogus Engineering Reports in Claims 
20,000 AI Users at Travelers Prep for Innovation 2.0; Claims Call Centers Cut 
