PROBLEM ON REINSTATEMENTS

December 28, 2024

Date of Loss: 30th August

December 4, 2024

Allianz has bought from Munich

January 27, 2025

A building has been constructed

February 15, 2024

Terrorism coverage under the standalone

February 1, 2024

  Star Health Insurance: Quarter

December 19, 2024

Graded retention under Surplus Treaty

Reinsurance

PROBLEM ON REINSTATEMENTS

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Allianz has bought from Munich Re a Risk XL USD 9 m xs USD 1 m with 2 reinstatements @ 100%.
Allianz also bought a CAT XL from Swiss Re USD 48 m xs USD 2 m with 2 reinstatements @ 100%.
The following are the net losses (after recovery from proportional reinsurers) of Allianz: All losses are USD in million. Losses 6,7 & 8 are due to a single event-earthquake on 25 December 2023.

Loss No —— Cause of Loss ——Net Loss
1————— Fire—————– USD 8 m
2————— Explosion———– USD 5m
3————— Fire——————USD 2m
4————— Lightning————USD 0.7m
5————— Fire ——————USD 8m
6————— Earthquake———–USD 10m
7————— Earthquake———–USD 7m
8— Earthquake (100 small losses put together)—USD 30 m
9 ————– Fire——————- USD 2 m

How much of the Loss will be paid by Allianz, how much of the loss will be paid by Munich Re and how much of the loss will be paid by Swiss Re?

Please write the final answer in the comments. If any of you want your steps also to be checked, please email to atmaram@localhost

I will reply to each and every email received on or before 5th Dec 2024.

Blog by Atmaram Cheruvu

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