Case Study In this example, we introduced a client to a MGA with a $25 million portfolio. The MGA business was highly specialized, carried a lower loss pick than the client’s overall existing portfolio and was not correlated to any business they currently write. BMS provided guidance, analytics and reinsurance support at every step in the process. The end result was an increase in expected net income and a decrease in volatility. Notes 1. $5 million marginal cost to existing reinsurance programs 2. New program runs at a lower loss ratio than existing business 3. Equivalent expense ratios 4. Adds $1.7 million to expected underwriting income 5. Adds stability to results due to non-correlating revenue stream
6. 1.2 point improvement in expected combined ratio 7. Less than 2% change in 250 year downside risk
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