Life insurers use reinsurance to move liabilities from regulated and rated companies that sell policies to shadow …

This paper studies life reinsurance as a solution to default risk in equity-linked life insurance products with surplus … reinsurer and the insurer. In both cases, we analyze the existence of proportional reinsurance and the impact of the insurer …’s investment strategies on optimal reinsurance. We find that the more risky the insurer’s investment portfolio is, the more risk …