As a pure reinsurer, TransRe stands apart from hybrids that combine both primary insurance and reinsurance in their operating models. And that’s a situation that CEO Michael Sapnar expects to continue into 2016. “We are responding to the challenges by being the sea of tranquility in the storm going on around us,” Sapnar said during a recent interview as he addressed questions about some of the topics du jour in the reinsurance world—mergers and acquisitions, alternative reinsurance capital, among others.

“It doesn’t mean we’re not going to be innovative and do new things. We’re investing a lot of money in technology and a lot of time in analytics to provide better information for our portfolio management and for our customers. But I don’t see radical changes at TransRe over the next 24 months,” he said.

Executive Summary

Unlike some companies among the latest crop of hedge fund reinsurers, reinsurance is Job 1 at TransRe, according to CEO Michael Sapnar. Here Sapnar discusses two flavors of alternative reinsurance capital, hybrid operating models and the impact of consolidation on the reinsurance sector.

In particular, a singular focus on reinsurance is a constant in the TransRe playbook. “We don’t compete with our customers. So you’re not going to buy reinsurance from us today and lose a policy to us tomorrow morning,” Sapnar said, describing the benefits of continuing to operate as a standalone reinsurer.

“That is becoming an increasingly important issue for our clients and customers,” Sapnar believes, flagging it as an advantage in a competitive market. “In a jump ball, we’ll get a better signing. We might get better information because we’re not using it to compete against somebody. We might have a longer and more open dialogue on certain things,” he added.

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