SOURCE: U.S. RE Analytics, LLC

April 16, 2012 09:35 ET

New Product From U.S. RE Analytics Identifies Policies That Erode Insurers' Return on Capital

PEARL RIVER, NY--(Marketwire - Apr 16, 2012) - U.S. RE Analytics, LLC has developed a new tool to help catastrophe-exposed insurance companies to reduce reinsurance costs and improve return on risk-adjusted capital, Anya Kutsina, Managing Director, announced.

U.S. RE Risk Optimizer is a proprietary tool that enables insurers to analyze each policy's contribution to the cost of risk in the company's total portfolio -- including reinsurance costs and the cost of capital. The tool was developed by Vlad Uhmylenko, Managing Director, and Bin Deng, Associate Director.

"Insurers can use this tool to refine risk selection and improve bottom-line results," Uhmylenko said. "In particular, U.S. RE Risk Optimizer identifies the policies that, due to inadequate pricing and concentration of exposure, erode the insurer's underwriting return on risk-adjusted capital," he pointed out. Uhmylenko said insurers also use the tool to analyze alternative business expansion strategies and build a more balanced, better-diversified portfolio.

"Policy rankings based on standard catastrophe modeling outputs such as per-policy AAL (Average Annual Loss) and even allocations of PML (Probable Maximum Loss) provide only a partial view of each policy's contribution to the insurer's operating and strategic goals. The more refined analysis provided by U.S. RE Risk Optimizer takes a comprehensive view on various catastrophe and non-catastrophe costs and expenses and their impact on the insurer's ability to achieve the targeted return on capital," Uhmylenko explained.

U.S. RE Risk Optimizer is used often in conjunction with U.S. RE Risk Manager, a web-based portal that enables insurers to better manage profitability by identifying key drivers of reinsurance costs and underwriting profits. U.S. RE Risk Optimizer also is offered as a stand-alone product to clients of U.S. RE Analytics.

U.S. RE Analytics, LLC is a consulting firm that provides analytical services to insurance and reinsurance clients in Enterprise Risk Management, Economic Capital Modeling, Reinsurance Structure Analysis, and related disciplines. For more information, visit

Product contacts: Anya Kutsina (; Vlad Uhmylenko (; Bin Deng (

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