Interview with Ramón Martínez - The Reinsurance Industry Remains Well-Capitalized to Handle Volatility and Rising Losses

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Ramon Martinez Carrera is the Chief Executive Officer of Active Capital Reinsurance (Active Re), a global reinsurance firm headquartered in Barbados. Mr. Martinez’s strategic focus on disciplined underwriting, financial strength, and innovation has been instrumental in achieving an ‘A’ (Excellent) rating from AM Best for three consecutive years. He emphasizes a collaborative, client-centric approach, fostering a work environment that values employee satisfaction and adaptability in the face of global challenges. With a career rooted in Insurance and financial institutions, Mr. Martinez Carrera has held directorships in various organizations, contributing to his comprehensive understanding of the reinsurance industry. His leadership continues to guide Active Re’s mission to deliver innovative, sustainable reinsurance solutions globally. Al Bayan Magazine met Mr. Martinez Carrera on the sidelines of the Rendez-Vous de Septembre held in Monte Carlo and conducted the following interview.

 

 

 

“The January 2026 renewals will be smooth and disciplined.”

 

 

How would you evaluate this year’s Monte Carlo Rendez-Vous, and did

you notice anything this year that was different from last year?

 

- This year is particularly important for the industry, coming after two very

strong years. We are now seeing a softer market and increased competition

in certain lines, but opportunities continue to arise. The Monte Carlo Rendez-

Vous remains the ideal occasion to meet with clients, distribution channels,

and partners, discuss the market trends, and explore new opportunities. It is

truly the best moment of the year for such meaningful exchanges.

 

 

What are the main challenges currently facing the reinsurance industry,

and how is your company addressing them?

 

- The reinsurance industry is currently navigating several significant challenges,

including market volatility, social inflation, and geopolitical uncertainties,

which affect not only our sector but the world at large. Additionally, shifting

financial markets are transforming the entire industry landscape. Despite

these challenges, opportunities remain abundant. At Active Re, we are focusing

on reducing the insurance gap, particularly in developing markets, while

also diversifying our portfolio and increasing our presence in mature markets

to achieve a balanced and resilient business strategy.

 

With loss ratios and interest rates shifting globally, how sustainable is the current reinsurance model?

 

- The reinsurance industry must carefully manage this cycle. While rates are declining across various lines of business, property insurance—which represents the majority of global risk—is currently experiencing more competitive conditions. Nevertheless, the industry remains well-capitalized to handle volatility and rising losses, particularly from natural catastrophes. At Active Re, we are strengthening our capitalization. Recently, AM Best reaffirmed Active Re’s A (Excellent) Financial Strength Rating with a stable outlook, sound operating performance, and appropriate enterprise risk management (ERM). Our capital base, consistently enhanced through reinvested earnings and capital contributions, has helped maintain Active Re’s risk-adjusted capitalization at the strongest level.

 

S&P has issued a warning to reinsurance companies about the heavy

reliance on Managing General Agents (MGAs). What is your view on

this?

 

- At Active Re, we have been working with MGAs for over ten years and have

accumulated substantial experience in managing, supporting, and relying on

them. While MGAs present both advantages and challenges, we believe the

benefits outweigh the drawbacks. Dealing with MGAs can be complex for two

main reasons. First, we must ensure alignment between the company’s interests

and those of the MGAs. Second, we dedicate at least six months to evaluating

prospective MGAs. We follow a structured methodology to assess them, focusing

on their platform, governance, expertise, and technology.

 

Currently, we have agreements with seven MGAs, and we ensure that they

complement our in-house underwriting teams rather than clash with them.

We maintain constant monitoring, regular reporting, and controls to mitigate

potential risks. This approach allows us to leverage the advantages of MGAs

while minimizing the associated challenges.

 

What are your expectations for the upcoming January 2026 renewals?

 

- We anticipate that the January 2026 renewals will be smooth and disciplined.

Reinsurers are likely to prioritize capital protection over earnings. The key question will be how risk is shared between cedent companies and reinsurers. I believe the industry is well-established, and Active Re is now expanding its scope across different lines of business. Our focus will increasingly be on specialty lines and mature markets.

 

AM Best Affirms Active Re’s Financial Strength at A (Excellent)

 

AM Best has reaffirmed the financial strength rating of Active Capital Reinsurance (Active Re) at A (Excellent) for the third consecutive year, with a stable outlook. The ratings agency also confirmed the company’s long-term issuer credit rating at “a” (Excellent).

 

In its assessment, AM Best highlighted Active Re’s strongest-level risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR), alongside favorable operating performance, a stable business profile, consistent technical discipline, an effective reinsurance programme, and a comprehensive risk management framework. These factors collectively reinforce confidence among the company’s clients and strategic partners across 137 countries.

 

Headquartered in Barbados and founded 18 years ago, Active Re reported equity exceeding USD 100 million in 2024, placing it in AM Best’s Financial Size Category VIII. The company currently serves over 650 cedants worldwide.

 

CEO Ramón Martínez Carrera said: “This latest affirmation by AM Best confirms the financial strength and long-term vision that define Active Re. Our mission remains to deliver innovative reinsurance solutions grounded in technical excellence, financial discipline, and a global perspective. This recognition inspires us to continue raising the standards of service and value we provide to our clients and partners across more than 137 countries”.

 

Active Re’s business mix is led by Property and Engineering (56.7%), followed by Affinity (29.6%) and Surety (13.5%). Geographically, its contributions are well diversified across Latin America (27.1%), North America (18.5%), the Middle East (18.5%), Asia-Pacific (18.5%), and Europe (17.4%), reflecting disciplined underwriting and resilience in volatile conditions.

 

The reinsurer emphasizes that its long-term commitment to the global market is guided by a corporate vision integrating innovation, sustainability, and financial strength, with the goal of delivering stability, trust, and high-value solutions to its clients and partners.

 

This article was initially released in Al Bayan with the title, "September October 2025 Issue 646 Monte Carlo Rendez-Vous 2025 Special - Sponsored by Chedid Re"