This is a description of the dynamic financial analysis model used by a property catastrophe reinsurer to manage its business. It is an integral part of the day-to-day operations at the Company, and is used as a decision making tool in the underwriting, investment, and capital management processes. It begins by describing the framework that the Company uses for risk management including a classification of the risks facing the Company, which is used to define and prioritize their implementation in the model. It also includes a description of the conceptual approach the Company takes to evaluate the tradeoff between risk and return. It goes on to describe the structure and operation of the dynamic financial analysis model and provides examples of its use at the Company, along with illustrative examples of the various types of output it produces.
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