Interview with Ramón Martínez - Active Re Produced Business in 141 Countries During 2023

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Since it has founded, Active Capital Reinsurance (Active Re) has shown continuous growth by sticking to a strategy which is focused on always reinforcing the pillars that support its vision of being global, specialized, and innovative, so that it achieves benefits for all. Active Re has strived to improve its model, build long-term partnerships, whilst stimulating professional talent. As a result, Active Re has successfully entered new markets and lines of business just as competitors are going in the opposite direction. Its business model and dynamic organizational structure attract highly qualified and experienced multi-professional professionals, while representing diverse cultures and nationalities. This diversity, together with a co-operative and inclusive organizational structure, has been a key factor in better serving its customers and strategic partners. When in Monte Carlo, covering the Rendez-Vous de Septembre, Al Bayan Magazine met Mr. Ramon Martinez Carrera, CEO of Active Re, and conducted the following interview.

 

 

 

 

“We are going to maintain our sustained growth with diversification in 2025.”

 

 

 

What are the main challenges that the reinsurance market is still facing?

The main challenges the market is facing are mainly, that some lines are higher than the last ten-year average. In addition, loss and allocations are still too high, largely for the medical companies and attachment points are relatively higher than it was before the pandemic. Climate change is a challenge in itself, which we have seen a lot of Natural Cat events because of climate change such as the floods that have taken place in Italy this year. In addition, the latest earthquakes, are taking place in Italy. These recent events have steered public attention and industry focus. We know that the regulatory part is still open to debate, as there is still a lot of discussion going on due to all the global challenges, the economic situation, and inflation. In terms of mergers and acquisitions, there are a lot of them, and we see that there will be a new trend in the future. We believe that we need to achieve the best results as possible as quickly as possible. This will close the reinsurance gap and the quantum of social risks needs to be addressed.

 

                                    

The economic situation of the reinsurance companies is becoming better than before. In your opinion, how is this affecting the market?

 

This is one of the key points for the reinsurance industry. For the first time, reinsurance companies have an own equity which was higher than the cost of capital. We saw both the traditional and alternative capital grow. But the cycle is different as we have already heard at previous conferences, and we see that the market is still in transition and at the same time the situation is becoming difficult in some lines of business. I mean competition has become much more difficult. Hopefully, all the independent parties can solve this situation in the near future. Keeping in mind that next year is also challenging but nevertheless I believe that the industry is better prepared to cope with this new situation we are facing.

 

As Active Re, what will be your plans and goals for 2025?

 

In terms of targets, we produced business in 141 countries in the last year and still there are countries in which we would like to be present and assist our clients. We expect to be able to reach new clients and to strengthen the relationship with the existing ones. In addition, we will continue the geographical expansion in a very orderly way. This will allow us to grow organically. In addition, we will improve our own intelligence and technology solutions. We are going to do our share of the profitable lines and grow, and we are now looking forward to expand our portfolio and we expect to be able to diversify our business lines. We expect to be in a good position in 2025. We are going to continue our sustained growth with diversifying the portfolio further. This will be our basic strategic goal.

 

 This article was initially released in Al Bayan with the title, "October 2024 Issue 635 Monte Carlo Rendez-Vous Special."