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Credit Life Reinsurance

Reinsurance for loan-linked life cover, high-volume, homogeneous portfolios ideally suited to proportional treaties.

Life

Credit life pairs a lender's loan book with life cover that repays outstanding balances on death or disability. Its homogeneity and volume make it well suited to quota-share treaties with profit-sharing.

Power Re approaches this line as a specialist: we assess each risk on its own merits, price it with actuarial rigor, and structure cover that genuinely fits the cedant’s exposure and objectives, never a one-size template.

Structures

How we structure it

The structures we most often deploy for this line, proportional and non-proportional, tailored to your book.

Quota Share

Proportional cover with aligned incentives and profit commission.

Portfolio scaling

Capacity to grow with lending origination volumes.

Analytics

Mortality/morbidity monitoring and portfolio steering.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Correlation with the credit cycle and unemployment.
Distribution conduct and mis-selling risk.
Data quality on age, sum and term.

Our appetite

High-volume, homogeneous loan-linked books with clean bordereaux and aligned incentives.

Technical note

Quota-share with profit commission aligns interests; we monitor loss ratios alongside lapse and prepayment dynamics.

Models

Actuarial modeling

The frequency and severity models we use to price this line, and the loss it aggregates to.

Frequency models

Binomial (lives)Poisson (deaths)

Severity models

Fixed sum assuredEmpirical distribution of sums

Expected mortality claims

$$E[S]=\sum_{x} n_x\,q_x\,\mathrm{SA}_x$$

n_x lives aged x, q_x the one-year mortality rate, SA the sum assured.

Illustrative mortality

Age x	q_x per 1,000
30	1.0
40	1.8
50	4.2
55	6.5
60	10.5
65	17.0
70	27.0

Illustrative one-year mortality rates. Actual pricing uses recognized valuation and industry mortality tables.

Discipline

Our underwriting approach

The discipline is the same across every line we write.

Risk selection

We assess each risk on its merits and let marginal business go, growth by quality, not volume.

Pricing discipline

Experience and exposure rating, credibility-weighted, load the price for volatility and cost of capital.

Accumulation control

Clear limits manage concentration by event, geography and cedant across the portfolio.

Claims partnership

Fast, fair and transparent claims handling, the moment our promise is tested.

Why Power Re

Why cede Credit Life Reinsurance to Power Re

✓
Specialist expertise
Deep technical knowledge of the line and of the Latin American market.
✓
Fast, clear decisions
A timely yes or no, with terms and capacity you can rely on.
✓
Financial strength
13× regulatory solvency coverage and a disciplined retrocession program.
✓
Long-term partnership
We co-design programs and stand with cedants through the cycle.

Let’s build resilient portfolios together

Partner with a reinsurer that combines technical discipline, financial strength and deep regional insight.

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