Guaranteed CI: Reinsurer's market comeback on the cards regardless of merger
Swiss Re is likely to return to the guaranteed critical illness (CI) market regardless of whether its acquisition of GE Insurance Solutions is completed, it has been revealed.
According to Tim Dickenson, head of UK communication at Swiss Re, the reinsurer reviewed its risk opportunities for the guaranteed CI market before the announcement of the merger was made.
Dickenson said the review has made the company confident it will be able to participate in the guaranteed CI market.
He said: "We are optimistic that we will be writing guaranteed critical illness reinsurance in the UK market.
"Further to our withdrawal from guaranteed critical illness in 2002, we are undertaking a review of our appetite for this risk in light of various positive developments that have taken place in the market, such as the ABI's work on definitions.
"However, this has nothing to do with our planned acquisition of GE Insurance Solutions."
The latest revelation suggests Swiss Re is seriously considering returning to the sector.
This is supported by the fact that Swiss Re has appointed Alberto Izaga, formerly of GE Insurance Solutions, head of its life and health products in the UK, something some commentators believe is a clear indication that the firm is preparing to re-enter the guaranteed CI market.
• ick Kirwan, protection market director at Scottish Widows, said while many people were not sure whether Swiss Re was going to go down the guaranteed route, the appointment of Izaga, who currently runs all GE's life and health operations in Europe, "speaks louder than words".
"This is a clear signal to the market that they are going to come back into the guaranteed critical illness market as he holds one of the key posts at GE, currently one of the biggest providers of guaranteed critical illness," argued Kirwan.
Dickenson played down this claim, however.
He said: "I wouldn't link these two things together. We look forward to Alberto Izaga joining Swiss Re, subject to the successful closing of the proposed acquisition. At that point we will also be able to review GE's in-force portfolio of guaranteed CI business. However, his appointment does not influence our current analysis of guaranteed CI opportunities, which is part of a routine review of product lines."
However, he added: "The core role of the head of life and health products is t o ensure a strong, globally consistent focus across all our life and health lines."
Swiss Re aims to complete the acquisition of GE at the end of the second quarter of 2006.
