PowerPoint Presentation - Insurope

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					Insurope’s Multipool




 The international employee benefit market’s leading multi-
                   employer pooling product

            locally focused for subsidiaries and advisers




Insurope - Baloise Seminar, February 2009, Basle
Pooling as of when…



            Should only Sun Microsystems qualify????


                     SMALL IS BEAUTIFUL
                          through
                       MULTIPOOL!!!


Insurope - Baloise Seminar, February 2009, Basle
Multipool…



                  “Multi-employer” pooling system

ie
     – Experience shared with other companies
     – Experience result protected by Stop Loss
       system


Insurope - Baloise Seminar, February 2009, Basle
Qualifying conditions


You or your client qualifies as soon as…

     – min. 2 countries with group contracts in each (*)
     – one contract poolable
so
     – No minimum number of lives
     – No minimum premium

If > 1,000 lives & > € 300,000 death & disability premium
    migration to other pooling system

Insurope - Baloise Seminar, February 2009, Basle
What happens with result…


• Yearly pay-out of result as dividend


• Overall result shared to positively participating contracts (in
  proportion to their contribution to the overall result)


• Even if overall result single client negative, there is a
  payment per positive contract of that single client




Insurope - Baloise Seminar, February 2009, Basle
Multipool dividend allocation (1)



   Multinational A = + 50
                                            Determination of dividend pay-out ratio
           B           NL
          -10          +60
                                            Sum positives = 100
                                            Sum negatives = -60
   Multinational B = -10
     DK         CH         UK                             Result = 40
     +20        +20        -50

                                                     Pay-out ratio = 40%


Insurope - Baloise Seminar, February 2009, Basle
Multipool dividend allocation (2)


                                                      Pay-out ratio = 40%
   Multinational A = + 50
                                           on positive results
      B      NL                                •NL gets 24
     -10     +60                               •DK & CH get 8 each
                                               •UK & B get nothing

   Multinational B = -10                   Multinational A
                                               Total result = 50
     DK         CH           UK
                                               Dividend = 24
     +20        +20          -50
                                           Multinational B
                                               Total result = -10
                                               Dividend = 16
Insurope - Baloise Seminar, February 2009, Basle
Multipool track record


                                     2007: 37%
                                     2006: 30%
                                     2005: 40%
                                     2004: 38%
                                     2003: 34%
                              Average of 36%
(Other network A** 26%)

Insurope - Baloise Seminar, February 2009, Basle
Advantages



• One negative performing contract can NOT ruin
  company result      higher dividend

• Higher probability of getting a dividend

• Overall protection by the stop loss system


Insurope - Baloise Seminar, February 2009, Basle
Illustration


Company with 2 contracts in Multipool

CH (60) & NL (-80) = -20

Year 2007

                     Insurope*            Network A**   Network B**
%                       37%                  35%           30%
Applies to              60                   0              0
Dividend                22                   0              0

(*) % applies to each positive contract
(**) % applies to consolidated result of pool

Insurope - Baloise Seminar, February 2009, Basle
Other advantages


Higher free cover limits
    – Locally
         Death Benefits Disability Pensions (p.a.)

         CHF 800,000                     CHF 50,000
    – If an Insurope case in Multipool
         CHF 1,134,000      CHF 72,900
    – If an Insurope case in a stand-alone pool
         CHF 1,863,000                   CHF 137,700
Insurope - Baloise Seminar, February 2009, Basle
Experience of Multipool


Overall
         Risk premiums reduced by
               – 2007 : 11.8%
               – 2006 : 9.5%
               – 2005 : 14.4%

Related to Swiss contracts
         Risk premiums reduced by
               – 2007 : 5.5%
               – 2006 : 4.5%
               – 2005 : 10.8%
Insurope - Baloise Seminar, February 2009, Basle
A case…


History
   2003-2006
   – Pool : South Africa + UK (+/- 300 lives)
   – Reduction in premium : 18%
   2007
   – Pool : Brazil + Portugal (+/- 4,200 lives)
   – Reduction in premium : 5.5%
   2008 - …
   – Migrates to stand-alone pooling system
   – Pool : Brazil, Denmark, Hong Kong, Netherlands,
     Norway, Portugal, UK (+/- 5,000 lives)
Insurope - Baloise Seminar, February 2009, Basle
Conclusion


• Participation       a proven advantage
• Bigger companies starting small or smaller
  companies
• Great returns through
   – a unique dividend distribution system
   – a careful risk screening
• Better underwriting conditions
• Best product in the market
Insurope - Baloise Seminar, February 2009, Basle
Conclusion


                                  Therefore…

                            CAN WE HELP….

                              YES, WE CAN !



Insurope - Baloise Seminar, February 2009, Basle

				
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