Posts Tagged ‘Bermuda Composite’



March 28th, 2011

Chart: Guy Carpenter Bermuda Reinsurance Composite, Source of Earnings, Year-End 2010

Posted at 1:00 AM ET

Guy Carpenter Bermuda Reinsurance Composite, Source of Earnings, Year-End 2010

bermudamarch-earnings

Source: Guy Carpenter & Company, LLC

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February 16th, 2011

Chart: Sustainability of Loss Reserves

Posted at 1:00 AM ET

Historically, one of the “big cats” has been sector under-reserving, which served as the backdrop for the last hard market. Over the last four years, reserve releases have featured prominently in the reinsurance sector and have continued to do so up until the third quarter of 2010. The chart below shows the contribution to reserve releases on the Guy Carpenter Bermuda Reinsurance Composite combined ratios from 2005. It is notable that the benefit from reserve releases has ticked up in the first nine months of 2010 by one full percentage point, to 8.8 points on the loss ratio. This has occurred during a year when many projected reserve releases would diminish.

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February 7th, 2011

Guy Carpenter Bermuda Reinsurance Composite: 3rd Q 2010

Posted at 1:00 AM ET

flandro_davidDavid Flandro, Global Head of Business Intelligence
Contact

Shareholders’ funds for the Guy Carpenter Bermuda Reinsurance Composite grew by 4.5 percent from year-end 2009 through the third quarter of 2010, largely on the continued recovery of asset values and strong operating results. With overall market conditions failing to have improved materially over the past 18 months, companies have decided to return capital to shareholders - in the form of buybacks, primarily, as well as dividends. Capital returns through the first nine months of 2010 amounted to nearly USD6.3 billion.

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January 11th, 2011

2011 Outlook: Potential Catalysts for a Cycle Turn, Part I

Posted at 1:00 AM ET

141x141jan1thumb4Given low valuations, low yields, macroeconomic instability, inflationary pressures and lower pricing, it is not unreasonable to argue that the current operating environment is among the most challenging in living memory. The question most frequently posed in the reinsurance sector currently is: What will it take to turn the market? Below we discuss several potential scenarios that could expedite the turn. However, it is most likely that a combination of events will ultimately create the inflection point from which the sector will again enter a hard market.

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November 9th, 2010

Chart: Bermuda Reinsurance Composite, Annual Return on Common Equity of the Average Constituent

Posted at 1:00 AM ET

Reinsurers tend to experience broad profit fluctuations. This is evidenced by the data in the chart below, which shows the average historical return on common equity (RoCE) of the Guy Carpenter Bermuda Reinsurance Composite group of companies. Note the recent large losses incurred in years 2001, 2005, and 2008. Although these were followed by periods of above-normal profitability, returns look likely to be lower in 2010 and could deteriorate quickly if losses occur.

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November 1st, 2010

Reinsurance: An efficient source of contingent capital and risk protection

Posted at 1:00 AM ET

flandro_david2David Flandro, Global Head of Business Intelligence
Contact

Insurers today are faced with challenges including lower pricing, long-term low interest rates and diminishing reserve redundancies, not to mention increasing natural catastrophe activity in peak risk zones such as Florida. Effective capital allocation and earnings protection are crucial to ensuring profitability and financial flexibility in this environment. The reinsurance purchasing decision is an integral aspect of both risk and capital management. In terms of risk, reinsurance protects insurers against peak or ‘extreme’ events, enabling them to continue providing cover in the wake of disasters. In terms of capital management, reinsurance is an efficient source of contingent capital that allows carriers to enter new business lines, satisfy changing regulatory requirements or simply maintain creditworthiness.

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September 7th, 2010

Chart: Guy Carpenter Bermuda Composite, Shareholders’ Funds, First Half 2010

Posted at 1:00 AM ET

bermuda-composite-first-half-2010-shf

Source:  Guy Carpenter & Company, LLC

September 6th, 2010

Chart: Guy Carpenter Bermuda Composite, Source of Earnings, First Half 2010

Posted at 1:00 AM ET

bermuda-composite-first-half-20101

Source: Guy Carpenter & Company, LLC

May 10th, 2010

GC Videocast - Dramatic Improvement in Reinsurer Earnings and Balance Sheets Following Financial Crisis (Chris Klein)

Posted at 1:00 AM ET

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Chris Klein, Guy Carpenter’s Head of Business Intelligence, reviews the dramatic change and improvement in reinsurers’ fortunes following the global financial crisis. He reviews the year- end 2009 earnings results of the Guy Carpenter Bermuda Reinsurance Composite. He also reviews the primary drivers for capital decline and then growth among those reinsurers in 2008 and 2009, respectively. The impact of capital growth on capacity is also discussed.

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