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Helios Re

The fictional reinsurer that serves as the running example throughout this site — its profile, objectives, portfolio, and the trial data we use for every calculation.

Helios Re is a fictional specialty reinsurer that serves as the running example throughout this site. Every contract structure, every metric calculation, every code example, and every interactive visualization uses Helios Re’s portfolio. If you see a number on this site, it traces back to the data on this page.

AttributeValue
NameHelios Re Ltd.
HeadquartersZurich, Switzerland
Founded2008
SpecialtyProperty catastrophe reinsurance
GeographiesNorth America, Caribbean, Europe, Japan
Perils coveredHurricane, earthquake, European windstorm
Business modelTraditional reinsurer with some ILS participation
Annual premium income~$250M (modelled portfolio)
Capital base~$800M
Employees~120

Helios Re is a mid-sized reinsurer — large enough to maintain a diversified multi-peril, multi-geography portfolio, but small enough that every contract matters to the aggregate risk profile. This makes it ideal for demonstrating portfolio-level analytics where individual contracts have visible marginal impact.

EntityRoleRelationship
SunCoast InsuranceCedentMulti-peril US insurer (HU + EQ); largest cedent
Pacific MutualCedentCalifornia-based insurer; primary EQ exposure
Baltica InsuranceCedentNorthern European insurer; windstorm exposure
Atlas Cat FundILS fund / CedentAlternative capital partner; also cedent for C6
NorthStar ReRetro providerProvides retrocession protection to Helios Re
Meridian BrokersBrokerPrimary broker relationship

Helios Re’s portfolio consists of six contracts chosen to illustrate different contract structures, perils, geographies, and inter-contract relationships. The portfolio is intentionally small — six contracts rather than thousands — so that every calculation can be verified by hand.

ContractTypeCedentPerilGeographyTermsParticipationPremium
C1CatXoLSunCoast Ins.HurricaneFL, USA$30M xs $10M, 1 reinst14.5%$14M
C2AggXoLSunCoast Ins.EarthquakeCA/AZ$10M xs $15M aggregate20%$5M
C3AggXoLSunCoast Ins.All USUSA$50M xs $300M (inures C1, C2)10%$8M
C4CatXoLPacific MutualEarthquakeCA, USA$10M xs $3M, 1 reinst25%$13M
C5Quota ShareBaltica Ins.WindstormEU25% cession30%$15M
C6CatXoLAtlas Cat FundEarthquakeJapan$30M xs $20M, 2 reinst15%$15M
Total$70M

The participation is the share of each layer that Helios Re holds — reinsurance layers are typically split across a panel of reinsurers, and Helios Re is one participant. By convention, this site computes a contract’s standalone metrics at 100% (the full layer), and applies participation only when contracts are rolled up into the portfolio. The terms and premium above are likewise stated at the 100% layer level. See Financial modelling for how participation enters as the final term.

The six contracts are designed to demonstrate:

  1. Geographic diversification — US, Europe, Japan (low cross-region correlation)
  2. Peril diversification — hurricane, earthquake, windstorm
  3. Structure diversity — excess-of-loss (per-occurrence), quota share (proportional), AggXoL (per-trial)
  4. Multi-contract cedent — SunCoast cedes three contracts (C1, C2, C3), with C3 inuring C1 and C2 to prevent double recovery
  5. Shared underlying events — SunCoast and Pacific Mutual both see CA EQ events at different loss scales
  6. Inuring — C3’s subject is SunCoast’s total net of C1 and C2 recoveries — the centerpiece for teaching contract dependencies
  7. Hand-computable numbers — all parameters are round numbers for easy mental arithmetic

A seventh contract, C7 (Trident Re Caribbean Hurricane CatXoL, $20M xs $10M), is introduced in the marginal pricing section as a candidate for portfolio addition.

ChapterWhat’s introduced
FoundationsCompany profile, market position, business relationships
Analytics ToolkitTrial data, contract application, risk metrics, pricing
Financial ModellingTerm-by-term contract compositions, worked loss transformations
ApplicationsFull portfolio pricing, marginal analysis, application outputs