Sampo Group

Annual Report 2011
Credit Risks
Credit Risk Management

Credit Risks Related to Reinsurance Counterparties

The distribution of reinsurance receivables and reinsurers’ portion of outstanding claims in If P&C on 31 December 2011 per rating category is presented in table 'Reinsurance receivables and reinsurers’ portion of outstanding claims per rating category, If P&C, 31 December 2011 and 31 December 2010'. In the table, EUR 139 million (EUR 120 million in 2010) are excluded, which mainly relates to captives and statutory pool solutions.
Reinsurance receivables and reinsurers' portion of outstanding claims per rating category,
If P&C, 31 December 2011 and 31 December 2010
  31 Dec 2011 31 Dec 2010

Rating

Total EURm

%

Total EURm %

AAA

0 0% 0 0%

AA+ - A-

380

95%

354 96%

BBB+ - BBB-

1 0% 1 0%

BB+ - C

1 0% 0 0%

D

0 0% 0 0%

Non-rated

19 5% 13 3%

Total

401 100% 368 100%

 

The proportion of reinsurance recoverables related to the ten largest individual reinsurance counterparties amounts to EUR 355 million, which is 66.2 per cent of total recoverables. The largest individual reinsurance counterparty is Munich Re (AA-), which accounts for 27.0 per cent of total recoverables.

The amount of ceded treaty and facultative premiums was EUR 60.7 million. Of this amount 100 per cent was related to reinsurance counterparties with a credit rating of A- or higher.

In Mandatum Life, the importance of reinsurance agreements is limited and thus credit risk related to reinsurance counterparties in Mandatum Life is immaterial. At the inception of the reinsurance, the accepted credit risk of the reinsurer is considered and the credit risks of reinsurance assets are monitored.

Credit Risks
Credit Risk Management