Utmost Good Faith in Reinsurance: A Tradition in Need of Adjustment

Thomas, Steven W.

doi:10.2307/1372823

Cited by 4 publications

(1 citation statement)

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“…Reinsurance, as such, spread the risk of catastrophic loss, which might bankrupt the ceding insurer. Additionally, it enables an original insurer to accept risks that would otherwise be beyond its capacity by allowing it to transfer a portion of that risk to reinsurer (Thomas, 2020).…”

Section: Introductionmentioning

confidence: 99%

Financial performance analysis of GIC Re

Mukherjee

Gorai

Sen

2020

XJM

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Purpose This study aims to analyse the following: first, the financial performance of General Insurance Re (GIC Re) using performance ratios (PRs); second, the uniformity of different financial performance indicators of GIC Re; third, the internal growth capacity of GIC Re; and finally, the likelihood of GIC Re going into financial distress. Design/methodology/approach As a sample, GIC Re, the lion shareholder in Indian Reinsurance Industry has been considered in the present study. All the necessary data have been extracted from the secondary sources over a time period of 16 years. The financial performance of GIC Re is assessed using five standard ratios, and the uniformity of different financial performance indicators of GIC Re has been examined using Kendall’s Coefficient of Concordance (W). To assess the internal growth capacity of GIC Re internal growth rate has been used, and the likelihood of GIC Re going into financial distress is analysed using multivariate discriminant approach, namely, modified Altman’s Z-score model and logit analysis technique, namely, Ohlson’s O-score model. Findings The results exhibit that financial performance of GIC Re is somewhat satisfactory over a few considerable areas. However, no notable degree of uniformity has been observed amongst the varied financial performance indicators, namely, performance ratio, expense ratio, return on assets, risk retention ratio and combined ratio of GIC Re. The results also reveal GIC Re is lacking ability of growing internally. Moreover, there remains a significant possibility of GIC Re going into financial distress in the near future and so. Originality/value This study is one of the first empirical research studies in India that examines the financial performance of GIC Re from different perspectives.

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Section: Introductionmentioning

confidence: 99%

Financial performance analysis of GIC Re

Mukherjee

Gorai

Sen

2020

XJM

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The Reinsurance Contract

Noussia¹

2013

Reinsurance Arbitrations

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Normative practices, narrative fallacies? International reinsurance and its history

Pearson

2020

Business History

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Reinsurance is often characterised as a business built on personal relationships, goodwill and mutual trust. However, at different times in its history observers have warned that technological and other changes threaten the survival of normative practices in the industry. This article investigates what was involved in the micro-business of reinsurance and how that business changed since its early days. It raises questions about the characterization of normative reinsurance practice and about the role of memory in the assessment of continuity and change.

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Utmost Good Faith in Reinsurance: A Tradition in Need of Adjustment

Cited by 4 publications

References 1 publication

Financial performance analysis of GIC Re

Financial performance analysis of GIC Re

The Reinsurance Contract

Normative practices, narrative fallacies? International reinsurance and its history

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