In an interview with Reinsurance News, Danish Iqbal, the recently appointed CEO of Somerset Re, said the company is focused on maintaining discipline and staying true to its core capabilities as it navigates an increasingly competitive life re/insurance market and an ever-evolving regulatory landscape.
Iqbal noted that despite recent market volatility, the combination of relatively higher interest rates and mortality returning to pre-pandemic levels has created improved conditions for life and annuity reinsurers.
He outlined current opportunities and challenges in the life reinsurance space. Iqbal explained that there will always be opportunities in the life reinsurance sector, given the ongoing demand for insurance and the need for strong reinsurance partners.
“I think there’s a demographic shift in the US, and with high interest rates and a lot of baby boomers hitting retirement age, there’s always a need for retirement protection products. And when market volatility occurs, insurance companies are always looking for strong reinsurance partners,” he said.
However, Iqbal highlighted the challenge posed by an ever-changing regulatory landscape and acknowledged that improved market conditions have also attracted new entrants.
“Challenges I see are that the regulatory landscape is always shifting and changing, and new entrants are coming in,” he said. “So it’s about the company staying disciplined, staying true to its core capabilities to survive those hiccups, and then being able to be there for the long run.”
Iqbal also anticipates future consolidation in the sector, further underscoring the importance of maintaining discipline.
“For us, it’s important to stay disciplined to maintain our strong balance sheet and keep focusing on our customer relationships. We’ll have a lot of opportunities to keep growing the company. And when that so-called consolidation happens, we’ll be in a good position to continue expanding,” he said.
During the interview, Iqbal described Somerset Re as a Bermuda-based, premier liability-driven reinsurer in the asset-intensive space. He noted that the company has been led by actuaries, citing both his own actuarial background and that of the two previous CEOs.
“We have an open-architecture investment philosophy, and we pick the best asset managers for each asset class, including our affiliated asset manager, which has a lot of proprietary capabilities,” he explained.
“We have a diversified book of business that allows us to be very capital efficient, and we get spread enhancement through the proprietary investment capabilities we’ve built. We look to share those benefits with our cedants, and that will help us grow the company.”
Iqbal expressed enthusiasm about returning to Somerset Re as CEO, effective April 30, 2025, following his tenure as President of Neptune Reinsurance Limited, a Bermuda-domiciled reinsurer integrated into Somerset Re in December 2024
“When the opportunity was presented to me to come back to Somerset Re, it was like going back home. I’m excited to take the company to its next chapter, continue shaping its culture, and expand its growth,” he said.
He also outlined the role of Aquarian Holdings, a diversified holding company and parent of Somerset Re.
“It has deep access to capital,” Iqbal said. “It can continue to fund Somerset Re’s growth and has relationships with sovereign wealth funds and other investors that provide us with the continued capital we need to keep our balance sheet strong, while experiencing growth.”
He added, “Aquarian also has an asset manager with proprietary capabilities that help us source assets that align well with Somerset’s liabilities. So it not only maintains Somerset’s strong balance sheet but also drives profitability.”
He emphasised that Somerset Re prioritises long-term relationships with its clients, working closely with them to understand their needs and deliver tailored solutions. This client-first approach, he said, is central to the company’s ongoing success.
Iqbal said, “We’ve always found that if we take care of our customers, we keep getting repeat business, and that helps us expand our growth.
“We have a lot of tools available to us to provide custom solutions to our clients. With these capabilities, we can provide both traditional and financial reinsurance solutions to our clients as well. We always focus on providing creative solutions to our customers, and always look to solve the problems they are facing.”
To support further growth, Iqbal said Somerset Re is focusing on jurisdictional and liability diversification, adding new talent, and embracing technological innovation.
As a closing remark, Iqbal said that alongside focusing on customers and maintaining a strong, stable company, Somerset Re is focusing on its team.
“We feel that if we take care of our team—our employees—they’ll take care of our customers and the company itself. So that’s very important to us, to continue making sure that the culture of the company stays strong and everybody’s excited to come to work every day,” he concluded.
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