Credit Risks Related to Reinsurance Counterparties
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.
