Run-off of reinsurance contracts
More and more frequently, the run-off of reinsurance contracts is terminated prematurely. In most cases the commutation is amicable. However, in some situations the value of the portfolio is a matter of dispute, or only one party demands the commutation, e.g. within a Solvent Scheme of Arrangement. We provide expert reports on the economic value of the remaining run-off programme and on the safety mark-ups. In addition, we comment on the limitations of actuarial methodology.