RISK IS OUR BUSINESS

About us

Labuan officially the Federal Territory of Labuan is a federal territory of Malaysia. It is made up of the eponymous Labuan Island and six smaller islands, and is located off the coast of the state of Sabah in East Malaysia. Labuan's capital is Victoria and is best known as a financial center offering international financial and business services via Labuan IBFC since 1990 as well as being an offshore support hub for deepwater oil and gas activities in the region. It is also a tourist destination for people travelling through Sabah, nearby Bruneians and scuba divers. The name Labuan derives from the Malay word labuhan which means harbour. Labuan is often referred to as the pearl of Borneo.

Labuan boasts a robust and internationally recognised regulatory framework, with a strong focus on insurance and risk management. The domicile also has a broad range of entities and business and investment structures to cater to crossborder transactions, business dealings and wealth management needs. In the risk management sector, the Labuan landscape is dotted with various licensed entities, from insurers, reinsurers and underwriters to managers numbering more than 200 licensed entities alone.

Labuan offers global investors and financial services providers a competitive tax structure and various tax exemptions, as well as access to the majority of Malaysia’s extensive network of more than 80 double-taxation treaties. In addition, Labuan is a cost-efficient, substance-enabling jurisdiction with an English speaking and well-educated work force.

EMG RE is one of many Reinsurance Companies registered in Labuan International Business and Financial Centre. The company was established in 2013 and has a license from Labuan FSA.

Specialties

We have significant experience and expertise in designing tailor made solutions for insurance companies in various countries. We design programs that provide for the most cost effective coverage for your insurance needs, taking into account the capital available and your appetite for risk. We are able to assist in financing capital if required.

We provide independent and unbiased advice on the potential program and coordinate the consultants needed to perform the analysis.

Our operation has been developed to specifically serve all the needs of the international insurance market. We have brought together a group of professionals to form a team which can support all the day-to-day operations of our clients in the areas of accounting, investment, administration, underwriting and claims. These specialist skills are made available to each of our clients and can be utilized as and when required.

Whilst the primary ongoing responsibility will inevitably be of an accounting and administrative nature, we believe that the availability of our expertise and experience is an important consideration in selecting a manager.

We tailor financial reporting to meet clients’ needs, understanding that each client has different reporting requirements. There is no standard package to fit all.

Senior management is always available to discuss and provide independent and unbiased advice on all aspects of the insurance program including.

Reinsurance Program
Design

Conventional
Reinsurance

Insurance Linked
Securities

Cat Bonds

Investment

Fronting
arrangements

INSURANCE LINKED SECURITIES

Insurance-linked securities, or ILS, are essentially financial instruments which are sold to investors whose value is affected by an insured loss event. As such the term insurance-linked security encompasses catastrophe bonds and other forms of risk-linked securitization.

Insurance-linked securities are generally thought to have little to no correlation with the wider financial markets as their value is linked to non-financial risks such as natural disasters, longevity risk or life insurance mortality.

As securities, insurance-linked securities can be and are traded among investors and on the secondary-market. They allow insurers to offload risk and raise capital.

CAT BONDS

Catastrophe bonds (“Cat Bonds”) are a form of insurance-linked security used to finance peak, non-recurrent insurance risks, such as hurricanes, tropical storms and earthquakes.
Cat Bonds are the most common form of insurance-linked security and have grown in response to hard reinsurance markets and demand from specialist cat bond funds.
Cat Bonds are offered directly to capital markets, reducing cyclicality and expanding the risk bearing capacity of the reinsurance market.
Cat Bonds are structured finance products that aim to isolate pure insurance risk from credit risk and other types of market risk and transform this risk into a capital markets form.
For a loss to qualify, it should occur at a particular location, exceed a damage threshold or might need to result from multiple events.
Cat Bonds are attractive from an investor perspective because they are a non-correlated asset class and the yield is much higher than similarly rated corporate bonds. They do, however, require special expertise to analyse and tend to suffer a complete loss upon default.
A Cat Bond is a high-yield bond that contains a trigger that may cause the principal payment due on the bonds to be forfeited if a qualifying loss is caused by a specified peril, such as a hurricane or earthquake.
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The trigger style may be:
Indemnity
An indemnity trigger is based on the actual loss to the sponsor.
Parametric
Parametric triggers are based on event characteristics derived from meteorological data and other third party sources.
Industry-wide los
Index triggers are based on industry estimates of loss.
Modelled
Modelled triggers are based on an industry loss model determined by running event parameters through the modelling firm’s database of industry exposures.
Scheme

Contacts

EMG RE Ltd.

Registered/principal office is Unit Level 13(A), Main Tower, Financial Park Labuan, Jalan Merdeka, 87007 Federal Territory of Labuan, Malaysia

www.emgre.com/

info@emgre.com