A new report from A.M. Best determined that “stocks for publicly traded reinsurance companies, including the four top European players, performed below the overall market for the first quarter of 2014, declining 1.3 percent, likely due to continued concerns over the decline in pricing for reinsurance risk.
The special report – “Global Reinsurer Stocks Face Challenges in 2014,” – states that “pricing pressures for catastrophe business continued during the Jan. 1 and April 1 renewals. Declines of as much as 20 percent (more pronounced in the United States) have been attributed to the absence of market-changing losses, as well as increased retentions carried by ceding companies.
“Some management teams have indicated that the inflow of capital from the insurance-linked securities (ILS) market led to lower rates in U.S. catastrophe business.”
Source: A.M. Best
Topics Trends Reinsurance
Was this article valuable?
Here are more articles you may enjoy.
Are Software Vendors Holding Insurers Hostage? Build Your Own, Webinar Says 
Insurance Regulators Defend State-Led Model in Reply to Warren 
State Farm to Increase Claims Workforce by 3,000 
FEMA’s New Flood Maps Means More Homes Require Flood Insurance: Cotality 
