As we approach the April 2015 reinsurance renewal, we look back at the Jan. 1 renewal.
Archive for the ‘Reins Markets’ Category
Mark Murray, Senior Vice President
The major rating agencies covering the reinsurance sector (A.M. Best, S&P, Moody’s, Fitch) have all voiced concerns with the industry’s ability to adjust to the seemingly overwhelming headwinds currently facing the sector. With A.M. Best recently changing its outlook, the view of the reinsurance sector across the rating agencies is now unanimously negative.
Massimo Reina, CEO, Continental Europe & MENA, Guy Carpenter & Company, LLC
It should come as no surprise that there is a general trend among larger cedents to centralize reinsurance buying decisions and retentions and to bundle homogeneous products. This has become possible with the improvement of available portfolio data. This practice has some obvious advantages for buyers, such as reduced spend, reduced administration, improved control over counter-party credit risks and, possibly, retention of additional profits that would otherwise be ceded to reinsurers.
Here we highlight recent GC Capital Ideas Chart Room entries highlighting Guy Carpenter’s Rate on Line (ROL) Index at the 2015 renewal.
A holistic approach that optimizes the use of the two traditionally separate areas of balance sheet management (reinsurance and investment strategy) can make a significant difference to (re)insurers’ financial results. (Re)insurers should seek to address both the asset and liability sides of the balance sheet in an integrated manner.
Guy Carpenter reports reinsurance pricing fell at the January 1, 2015 renewals in many segments, affecting almost all lines of business and geographies, continuing recent renewal trends.