French mutual reinsurer Mutuelle Centrale de Réassurance (MCR) has signed a multi-year quota share reinsurance agreement with Toa Re Europe, the European subsidiary of Japanese reinsurer, to strengthen the former’s diversification and support the latter’s growth plans.
The strategic partnership, which can be scaled up gradually over three years, allows MCR and Toa Re Europe to fine-tune their strategies while building a long-term relationship.
For MCR, this multi-year quota share reinsurance treaty provides unprecedented geographic diversification of its portfolio, providing participation opportunities for more than 200 cedants across a broad range of geographies.
The agreement also enables MCR to expand into new business categories, with the company highlighting networking, credit and guarantees as noteworthy businesses.
In addition, Toa Re Europe’s investment portfolio is highly complementary to MCR’s current books, and the company said the mutual reinsurer expects the new partnership will also result in the development of risk capabilities with high growth potential.
Jérôme Sennelier, CEO of MCR, said: “This partnership perfectly reflects our strategy of controlled and diversified growth in the reinsurance sector. Toa Re Europe brings proven expertise and access to markets that are complementary to ours, while we also provide them with the capabilities they need to grow. This is a win-win agreement.”
Philippe Regazzoni, CEO of Toa Re Europe, added: “MCR is an ideal strategic partner for Toa Re Europe. Its stability, expertise, strong capital and long-term focus are a perfect fit with our underwriting philosophy. This partnership was established with a clear vision to create long-term value for both parties.”
