Posts Tagged ‘capital’



June 15th, 2017

Industry Must Bend the Risk Curve to Deliver Value, Says John Doyle; MMC Young Professionals’ Global Forum 2017

Posted at 8:44 AM ET

John Doyle, President of Marsh LLC, called upon delegates at the MMC Young Professionals’ Global Forum to take advantage of the multiple opportunities in the current environment which he called the “Age of the Client.”

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June 15th, 2017

Insurance Industry Ripe for Disruption, Says VJ Dowling; MMC Young Professionals’ Global Forum 2017

Posted at 4:30 AM ET

The insurance industry will be profoundly disrupted by technological change, Vincent J. Dowling Jr., Managing Partner of Dowling & Partners Securities LLC, told attendees at MMC’s Young Professionals’ Global Forum in London.

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June 9th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

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June 8th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part I

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991

David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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Industry Must Adapt to Emerging Segmentation Phase

Pricing declines continued in the insurance-linked securities (ILS) segment of alternative capital. In turn, this has prompted questions about the sustainability of lower pricing and capacity post-catastrophe event, suggesting that traditional reinsurers’ models and the traditional reinsurance and alternative capital mix of capital sources still need to evolve. Maintaining premium rate adequacy and stable capacity requires better access to the expanding sources of capital and awareness of the benefits of better risk syndication and segmentation, according to David Priebe, Vice Chairman at Guy Carpenter and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities.

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March 23rd, 2017

Strategic Growth Analysis – The Guy Carpenter Approach: Part II

Posted at 1:00 AM ET

chu_julia_photograph-smJulia Chu, Managing Director

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The analysis progresses with a retrospective financial analysis that demonstrates “what if” the company had a share of the wallet in that particular business. Synergies between the existing business and growth opportunities can be exposed. Our research compares annual volatility, which is the standard deviation of ten or more years of a company’s underwriting margin, with the pro-forma profitability or five year average underwriting margin if the company had written specific businesses.

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March 21st, 2017

Emerging Practices in Risk Tolerances: Part II

Posted at 1:00 AM ET

brian-fischer-2014-hs-sm1Brian C. Fischer, Managing Director, GC Analytics®

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As A.M. Best implements a new rating methodology with enterprise risk management (ERM) as a specific rating category, risk tolerances will play an increasingly important role with the potential to further differentiate risk profiles in Best’s evaluation of companies’ risk and capital needs. Risk tolerances will likely positively impact a company’s ERM evaluation when A.M. Best deems the company’s risk tolerances as adequate and appropriate.

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March 2nd, 2017

Solvency II: Greater Risk-Driven Management: Part I

Posted at 1:00 AM ET

andrew-cox-95eagle_matthew-smeddy-vanbeneden-sm21 Andrew Cox, Managing Director; Matthew Eagle, Head of GC Analytics - International and Eddy Vanbeneden, Managing Director

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On January 1, 2016, the Solvency II regulatory regime took effect. Some celebrated; others were weary from the months and years of preparation.

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February 27th, 2017

Managing Volatility Key To Solvency II Transition: Part II

Posted at 1:00 AM ET

paire-eric-sm1Eric Paire, Head of Global Partners & Strategic Advisory, EMEA

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“To remain competitive, smaller companies simply cannot afford to operate at 200 percent. This volatility on multiple fronts means that establishing the solvency level that will provide a sufficiently robust capital buffer to withstand these fluctuations is extremely difficult. Is it 130 percent, 150 percent, 170 percent or higher?” notes Eric Paire, Head of Global Partners & Strategic Advisory, EMEA at Guy Carpenter.

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February 14th, 2017

Chart: Solvency II Ratios as of End of H1 2016

Posted at 1:00 AM ET

Chart presents (re)insurers’ Solvency II ratios compiled by Guy Carpenter for the first half of 2016. Many companies publish their solvency ratios without being required to do so, and some others actually specify target solvency ratio ranges as part of their risk appetite and financial targets. Solvency ratios are another metric for investors to use when assessing the relative financial strength of companies - and (re)insurance buyers can do the same when assessing counterparty risk.

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February 13th, 2017

Expanding Range Of Capital Sources Offers Benefits: Part II

Posted at 1:00 AM ET

priebe_david-sm-198cory-anger-small-1991David Priebe, Vice Chairman and Cory Anger, Global Head of ILS Origination and Structuring at GC Securities*

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“Historically, traditional reinsurers increase their premium rates after industry catastrophe events in order to replenish capital and attract new capital, with the goal of reaching overall premium rate adequacy and restoring returns on equity to levels more consistent with what is expected of equity capital,” David Priebe, Vice Chairman at Guy Carpenter, explains. “However, GC Securities has found that significant pricing increases will be difficult to sustain for short periods because of the inflow of new capital that typically follows catastrophe events. Alternative capital is already making contingency plans with funds created so that they can inflow new capital rapidly post-event. The difficulty in sustaining price increases means that premium rate adequacy is even more critical in soft markets when capital is abundant. (Re)insurers need to evolve by reassessing business models for more efficient allocation of risk to capital sources.”

Continue reading…