Macif has launched an internal reinsurance vehicle, M Réassurance, as the French mutual insurance group adjusts its risk-transfer strategy in a tightening reinsurance market. The vehicle is wholly owned by Macif and is intended to be immediately operational.
The new entity is designed to provide an additional protection layer for the group, particularly for climate-related exposures and emerging risks. It will sit alongside external reinsurance and offer an alternative where traditional cover is seen as distant from underlying risks or priced in ways Macif considers out of step with technical conditions.
Macif said the move responds to structural shifts since 2023, including higher retentions, increased reinsurance rates and reduced aggregate protections. The group also pointed to the limits of existing equalization mechanisms in absorbing large or repeated losses given the current scale of risk.
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With around €230 million in ceded premiums per year, Macif expects M Réassurance to assume €17 million of premiums in its first year. The volume is projected to increase gradually to about €30 million annually as the internal vehicle is integrated into the group’s protection framework.
“Given the exposure to risks and the reduced intervention of reinsurers, ‘M Réassurance’ will allow Macif to manage its protections and build better long-term resilience,” said Jean-Philippe Dogneton (pictured above), CEO of Macif.
He said the vehicle will support changes to reinsurance programs representing more than €200 million in annual premiums and is part of a strategic plan focused on preparing for future climate and loss trends.
The launch comes amid a broader shift in France toward internal risk vehicles and captives following regulatory changes at the end of 2022. An AM Best report found that France recorded the highest net captive growth in Europe, with five new formations and no closures, including entities such as AssuraPoste Re, CDA Reinsurance and Orange Réassurance, and further licenses granted by April earlier this year.
Macif’s move also reflects a wider European pattern of primary insurers expanding into reinsurance. A recent Fitch Ratings study noted that several German and French groups have entered or grown in reinsurance to diversify income and build scale, while cautioning that execution risk and earnings volatility are key challenges when insurers add reinsurance operations alongside their core business.
Dogneton said the creation of M Réassurance marks “another step in developing a sustainable, robust, and innovative mutualist model” as Macif moves into implementation.
