[Asia Economy Reporter Oh Hyung-gil] Korean Re announced on the 4th that it has formed a strategic partnership with the global investment firm Carlyle Group to jointly undertake quota share reinsurance contracts and provide related services to domestic insurance companies.
Quota share reinsurance is a newly introduced system in the first half of the year designed to help insurance companies reduce and adjust insurance liabilities in preparation for the adoption of international accounting standards for insurance contracts (IFRS17) and the new solvency regime (K-ICS). Through quota share reinsurance, insurance companies can transfer risks such as insurance risk and interest rate risk of insurance products to reinsurers.
The two companies plan to jointly develop quota share reinsurance solutions suitable for domestic insurers and collaborate across a wide range of areas including product design and structuring, management of reinsurance assets,
required capital management, and new capital procurement.
Carlyle Group, established in Washington, USA in 1987, manages assets worth $221 billion, approximately KRW 267 trillion, across 32 offices worldwide.
Korean Re has been preparing since 2018 by setting up a dedicated team for quota share reinsurance underwriting.
A Korean Re official stated, "We will be able to stably secure the necessary collateral in the quota share reinsurance market and develop differentiated quota share reinsurance solutions leveraging Carlyle Group’s asset management, capital raising capabilities, and global financial reinsurance business expertise," adding, "Carlyle Group will also be able to actively expand its reinsurance and asset management businesses in the domestic reinsurance market by utilizing Korean Re’s network."
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