alternative capital News

Guy Carpenter Says Reinsurance Prices Squeezed by Oversupply

Reinsurance prices declined on policies renewed for July 1 amid low losses and as record levels of catastrophe bonds drove an oversupply of capital, according to Guy Carpenter & Co. LLC. There were “price decreases across virtually all geographies and …

One Catastrophe Won’t Scare Away Alternative Capital: S&P Panelists

Catastrophe bond and insurance-linked securities (ILS) issuance have surged to record levels this year thanks to the continuing influx of alternative capital into the reinsurance market, leaving credit analysts and industry executives with questions about the challenges and benefits this …

Weakness in Pricing Lowers Reinsurers’ Q1 2014 Profits

Swiss Re and Hannover Re, the world’s no. 2 and 3 reinsurers, said they saw lower prices in natural disaster reinsurance and April renewals, as they beat profit expectations in the first quarter.   Fewer serious natural disasters, as well …

Are Bermuda’s Re/Insurers ‘Victims of Their Own Success?’ S&P Report

Bermuda’s re/insurers “reaped strong earnings in 2013 despite increasing competition, persistently low investment yields, and a tepid economic recovery in the U.S. and Europe,” according to a Standard & Poor’s Ratings Services report titled “Barbarians At The Gates: Are Bermudian …

Will Ratings Concerns Hinder Reinsurer M&A, Hedge Fund ‘Play’? -Litmus Analysis

In the “investment banker 101 playbook” for cyclical industries the reinsurance industry has arrived at the page marked “weak pricing due to too much competition; sell M&A services to our clients,” wrote Stuart Shipperlee, Analytical Partner at London-based Litmus Analysis*. …

April Renewals Confirm Reinsurance Rates Continue to Fall: Willis Re Chairman

“Reinsurance rates began to fall last year,” said Willis Re’s Chairman James Vickers in a telephone interview. The January renewals “saw more reductions, and this has continued in April.” Vickers outlined three principle reasons: 1) 2013 was a benign year …

P/C Reinsurance Market Softer Due to Alternative Capital: Execs

A new survey from Towers Watson confirms that more than half (55 percent) of property/casualty insurance chief financial officers believe the property reinsurance market is softer than the primary market, while about one-third (34 percent) deem that the same is …

Part II – Reinsurance: Emerging Markets and Risks – the Road Ahead

As detailed in Part I, the reinsurance industry faces the task of partially reinventing itself to expand in those sectors where it can achieve growth. Property catastrophe coverage isn’t off the table, but it’s now an overcrowded field. Ever more …

Reinsurance at Crossroads As New Factors Sweep Away Old Habits

Part I – The Market in the Developed Economies A significant number of reinsurance treaties were renewed this month, heavily concentrated in property catastrophe coverage. It’s become apparent, however, that this market, for a number of reasons, has seen changes …

Capital Capacity Softens January Renewal Rates up to 25%: Willis Re Report

According to Willis Re’s January 2014 Reinsurance Renewals Report, “a heady cocktail of converging factors has fuelled a soft buyers’ market in nearly all lines of business at the 1 January 2014 renewals.” Among the challenges faced by both traditional …