5 Insurance risk
The swisspartners Group with its business units in the Principality of Liechtenstein and on the Cayman Islands writes solely fund-linked life insurance policies for wealthy private clients. These fund-linked life insurance policies generally comprise fund-linked life insurance policies with mortality cover against one-time investments and fund-linked annuities. The policy holder bears the investment risk and benefits from any investment performance.
The sum at risk with mortality insurance benefits amounts to CHF 32.0 million. A total of CHF 30.0 million of this sum is reinsured, so that a default risk or excess of CHF 2.0 million existed at 31 December 2013. On account of the low deductible sum at risk, a calculation and disclosure of the sensitivities have not been made. The reinsurers have at least an «A»-rating from Standard & Poor’s. The default risk associated with the reinsurers is regularly monitored.