Not much or significant change over 2014. But the decrease in Policyholder Surplus with relatively stagnant net income may point to further declines in ROE in 2016. Big 2016 catastrophes, from ‘wet to hot’, in Texas and Canada, will reduce the ROE and may kick start reinsurance rates for 2017 renewals. They may also perhaps spur increases in yield rates demanded by investors in ILSs, and reinsurers, for mid-year 2016 and 2017 reinsurance program renewals.
Investment returns are hurting them big time. They have been counting on them continuing and like AIG, the hedge funds have not been doing well. Hey, let’s just ask for more rate and stick it to the consumers.
Not much or significant change over 2014. But the decrease in Policyholder Surplus with relatively stagnant net income may point to further declines in ROE in 2016. Big 2016 catastrophes, from ‘wet to hot’, in Texas and Canada, will reduce the ROE and may kick start reinsurance rates for 2017 renewals. They may also perhaps spur increases in yield rates demanded by investors in ILSs, and reinsurers, for mid-year 2016 and 2017 reinsurance program renewals.
Investment returns are hurting them big time. They have been counting on them continuing and like AIG, the hedge funds have not been doing well. Hey, let’s just ask for more rate and stick it to the consumers.