BMS Pathlight Analytics – 0422-01

Protect Reinsurance is just one piece of your capital management plan. A reinsurance strategy should never be designed in a vacuum. We must understand how much capital your business requires, your long term goals and your net risk appetite. Even then, reinsurance is not always the answer and certainly isn’t the only answer - there are many capital levers that we can pull. We consider the following three items when helping clients manage and preserve their capital: Balance Sheet ظ Current capital position and any upcoming impacting events (e.g. expiring debt) ظ Gross capital at risk and gross volatility (sources and magnitude of downside risk) ظ Required capital from regulatory and rating agency perspective 1

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Core Reinsurance Structure ظ Key effectiveness metrics ظ Comparison to any other considered structures ظ Net position in relation to capital position Around-the-Edges Transactions ظ Legacy Transactions ظ Discretionary reinsurance protections (such as: loss pick arbitrage, structured aggregate for frequency tail risk, and sleep at night covers)

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