Navigating the
future of risk

2017 ANNUAL REVIEW

“We value and appreciate the privilege of our direct relationships, which allow us to really listen and engage with you through unfiltered and unvarnished conversations.”

Kara Raiguel
President & CEO, General Re Corporation
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2017 was a year of challenges for Gen Re, both external and internal. The external challenges do not need much of an explanation, as the natural catastrophes of 2017 hit Gen Re’s underwriting results much like they hit the industry – harshly. In line with most of our competitors in the risk business, we ended 2017 with a combined ratio well north of 100%, landing at 114.6% on $6.4 billion of net earned premium. That earns 2017 the uncomfortable distinction of being one of the worst underwriting performances in Gen Re history. As humbling as that is, one of the consolations of having a balance sheet strong enough to withstand the harshest of hits is that when we experience a year like 2017, we can refer to it as a disappointing part of our history, because it does nothing to threaten our future or the path we are forging ahead.

Despite the disappointing results for 2017, I am enthusiastic about how the internal ambitions that we set for ourselves will favorably impact Gen Re well into the future. Gen Re has always been a strong partner to its clients, financially and otherwise, and we are actively focusing on expanding the ways in which our financial strength can be put to work for our clients. We are encouraging our associates to have the confidence and perseverance to explore how best to meet each client’s needs in ways both obvious and creative, and relentlessly applying the re-energized efficiency and creativity of our team to assisting our clients in tackling their challenges.

I could not be more proud of the focus and diligence that Gen Re associates brought to these tasks. It is not easy to maintain your enthusiasm and energy when your efforts are not reflected in the company’s current results. Nonetheless, we grew written premium last year in almost every business unit. I hope and trust that you, our clients, are also seeing evidence of the entrepreneurial spirit that we have encouraged our associates to embrace. In fact, we are eager to hear from you about how we are doing, and what we can do better. We value and appreciate the privilege of our direct relationships, which allow us to really listen and engage with you through unfiltered and unvarnished conversations.

With 2017 behind us, and as we proceed through 2018, we are a leaner and more focused business partner for our clients. We have a special advantage in our pursuit of our business goals: Gen Re does not have capital constraints or the impositions of an unrealistic owner as excuses for failing to meet its clients’ needs. I think this is best demonstrated by another look at those external challenges the industry faced in 2017. It is easy for the reinsurance industry to congratulate itself on a job well done after the losses have been paid, but I know what we were thinking as Irma was headed towards Miami, “How do we get checks to our customers quickly?” and “How can we help our customers move forward from such a tail event?”

When you have a meaningful and direct business partnership with your reinsured, these are the only things to think about when the losses are coming, and if we can have that kind of service-oriented mindset establish the tone for our work, then both Gen Re and its clients have a great and long future in front of them – whatever the challenges that will surely come.

Kind regards and best wishes for 2018,

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The insurance industry is experiencing an unprecedented rate of change. Analytics, however, continue to drive our decisions – the way we price business, understand exposures and interact with our customers. There is a heightened sense of urgency to bring new and exciting products to market. Our customers are challenged to respond to consumer demands for an improved customer experience and a simplified buying process, and our products are evolving as the underlying risks change. The stories that follow highlight a few of the ways we’re tackling these challenges at Gen Re.

DATA ANALYTICS

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MOBILE SOLUTIONS

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ROBOTIC PROCESS AUTOMATION

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General Re Corporation  |  Fiscal Year 2017*

FINANCIAL HIGHLIGHTS

29,758

TOTAL INVESTMENTS

40,924

TOTAL ASSETS

22,319

UNDERWRITING RESERVES

14,359

SHAREHOLDERS’ EQUITY

6,664

NET PREMIUMS WRITTEN**

114 %

COMBINED RATIO**

* Unaudited, amounts in millions of U.S. dollars
** Amounts per Berkshire Hathaway Annual Report, which excludes the impact of the intercompany loss portfolio and quota share retrocessional agreements.

 
FINANCIAL SUMMARY
General Re Corporation  |  Fiscal Year 2017

Financial Ratings

A.M. Best
A++
Moody’s
Aa1
STANDARD & POOR’S
AA+