CAMBODIA’S Infinity Insurance has secured the world’s largest firm in the sector, Munich Re, as a reinsurer – a move one broker described yesterday as a sign of its robust performance.
Reinsurers mitigate some of the financial risk for an insurance company, essentially acting as an insurer for the firm’s policies.
“The only reason billion-dollar companies back little companies like us is because they believe our performance is sustainable. So we’ve obviously performed well over three years [since Infinity started] to be able to secure their support,” said David Carter, Infinity’s chief executive.
“Bringing Munich Re on gives us confidence because it would only get involved with a company where it sees good performance,” he added.
“It means we that have more confidence that if we have a big loss, we’re going to be able to recover those funds and pay the customer very quickly,”
Infinity Insurance, which falls under the Royal Group’s umbrella, said that securing Munich Re as a reinsurer was “necessary”, and that the firm had been seeking to do so for about six months.
It already boasts global player Swiss Re as its lead reinsurer, along with Everest Re Group, Korean Re and Asia Capital Reinsurance Group.
David Carter added: “Munich Re is rated AA- by Standard and Poor’s. It’s one of the highest-rated reinsurers in the world.
"You get more security with a better rating, which means that your overall security position is stronger.”
Nick Cochrane, Singapore-based operations director at reinsurance broker PWS East Asia, said yesterday that Infinity was a demonstrably strong company to be able to attract the top two reinsurers in the world.
“Not all companies can do that,” he said.
Cochrane said that reinsurers were looking for new markets to develop into, with Asian countries points of especial interest.
“The insurance penetration in Cambodia is very low indeed,” he added.
“However, you can [attract big firms] if you have progressive companies,” he said.