Given the record losses in investment asset values, the rate of return on equity (ROE) for the Guy Carpenter Global Reinsurance Composite dropped from 13.4 percent in 2007 to 10.4 percent in 2008. The decline continued into the first quarter of 2009 — dropping to 7.8 percent. Reinsurers felt under pressure to produce higher returns, and so pushed for rate hikes.
September 15th, 2009
Posted at 12:57 AM ET
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