Reinsurer profitability, as measured by the pre-tax ROE for the Guy Carpenter Global Reinsurance Composite, peaked at 21.9 percent in 2006 and declined slightly to 19 percent in 2007. In the first quarter of 2008, the Guy Carpenter Global Reinsurance Composite ROE dropped to 12.5 percent. The industry is still in a strong profit position, though, as the combined ratio in the first quarter was still below 100.
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