AM Best’s population of global reinsurance companies posted a return on equity (ROE) of 22% in 2023 – a five-year high that was driven mainly by favorable investment income and strong underwriting performance. The fundamentals are excellent, but Hurricanes Helene …
Reinsurers’ profits will soon drop below their cost of capital* and could remain there until the underwriting and/or investment cycles turn, according to Standard & Poor’s in a new report. S&P attributed this pressure on profitability to a combination of …
The low interest rate environment represents a significant challenge for insurers, according to a report published by A.M. Best. “European insurers are struggling to generate investment income as the majority of their invested assets are held in high-quality fixed-income securities,” …
The U.S. economy is evolving in many ways, most significantly when it comes to both the cost of capital and the ownership of capital, and that change in capital ownership is a challenge for the insurance industry, according to William …
Reinsurers are being squeezed by price competition and subdued demand from insurers for their products, and traditional mergers may not be enough to save those that lack either global reach or specialized focus. Medium-sized, “me-too” reinsurers are ripe for consolidation, …
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 …
