The strategy of reducing costs through the creation of a captive reinsurance company: case study Sonatrach Ré
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Date
2019-06
Journal Title
Journal ISSN
Volume Title
Publisher
Ecole des Hautes Etudes commerciales
Abstract
Considered as one of many Risk Management tools, this reinsurance captive has allowed
SONATRACH to position itself as one of the largest oil companies of its size with innovation in
this field.
By acquiring its own captive, the national company wanted to improve its risk management,
reduce the level of charges related to reinsurance, be more specific in the choice of reinsurers and
ensure better defense of the interests of the group.
It remains clear that the captive is called to play a more important role in the coming years to
assert himself more and demonstrate his contribution to lowering the cost of insurance for the
SONATRACH group than in the role of assistance to the group in matters risk management and
insurance solutions.
Finally, it is important to note that, in addition to the financial gains that this company has been
able to bring to the Group, the capital acquired by its staff since its creation remains invaluable.
This captive should have with the support of his management beautiful exploits to achieve and a
multitude of objectives to achieve. Its financial alliance will enable it to cover a maximum of
risks and transfer the minimum capital. By offering innovative services, in keeping with the logic
of progress, it supports sustainable development
Description
Keywords
Strategy, Internationalization, Insurance, Reinsurance captives, Sonatrach