Posts Tagged ‘dividend’

June 3rd, 2010

Global Reinsurance Composite Net Income Declines, Investment Income Recovers in 1 Q, 2010

Posted at 1:00 AM ET

Chris Klein, Global Head of Business Intelligence

The Guy Carpenter Global Reinsurance Composite’s net income declined in the first quarter of 2010 compared with the same quarter in 2009. The companies comprising the group showed an aggregate net gain of USD1.4 billion, a decline of 31 percent from the first quarter of 2009. The primary driver was an increase in non-life underwriting losses.

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August 31st, 2009

ERM Did Not Fail in 2008, Part I: A Year of Significant Loss

Posted at 1:00 AM ET

mango_smallDonald Mango, Chief Actuary

The profound financial damage that began last year has left the insurance industry looking for answers. Diligent underwriting and conservative investment strategies were not enough to prevent natural and financial catastrophes from bleeding balance sheets. Both firm leadership teams and key stakeholders have questioned the value of Enterprise Risk Management (ERM) frameworks, yet the conclusion that ERM failed may be hasty. After all, the insurance industry actually survived the events of 2008 reasonably well, with at least some of the credit going to their ERM efforts. Where risk management did fail, the underlying causes were deeper.

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August 24th, 2009

1H2009 Reinsurer Financial Update: Capital Returns

Posted at 1:01 AM ET

Christopher Klein, Global Head of Business Intelligence

Underwriting and investment gains contributed to a general increase in capital in the first half of 2009. Some reinsurers have even regained half or more of what they lost as a result of last year’s hurricanes and financial shocks. Financial market stability has opened several options unthinkable nine months ago, including share buybacks, dividends and even maintaining a bit of extra capital as a cushion — after all, it was the excess capital held at the beginning of last year that helped reinsurers withstand the effects of the financial crisis.

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August 3rd, 2009

The Firm-Value Risk Model

Posted at 7:00 AM ET

John Major, ASA, MAAA, Senior Vice President, Instrat

This paper, a sequel to chapter 2.6 of Guy Carpenter’s 2007 book, Enterprise Risk Analysis, illustrates some of the complex interactions between risk, capital strategy, and the optimal usage of risk transfer; and how critical decisions can be based on impact to (re)insurer value using Guy Carpenter’s Firm-Value Risk Model (FVRM) methodology.

Download The Firm-Value Risk Model >>

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December 4th, 2008

Chart Update: Shareholders’ Equity Changes at Nine Months

Posted at 4:00 PM ET

As third quarter results become available, Guy Carpenter will continue to update the Change in Equity chart. With the latest information, the analysis has not changed, indicating that the latest results are consistent with early insights.

To download this chart, right-click on the image, and select “Save Picture As”. If you have any trouble, please e-mail us.

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November 20th, 2008

Chart: Shareholders’ Equity Changes at Nine Months

Posted at 12:50 AM ET

Unrealized losses, share repurchases, and dividends combined to drive aggregate shareholders’ funds for the Guy Carpenter Reinsurance Composite 16 percent lower for the year by September 30, 2008. Net income was modest, heavily impaired by realized losses.

To download this chart, right-click on the image, and select “Save Picture As”. If you have any trouble, please e-mail us.

October 28th, 2008

Capital Drought on the Horizon?

Posted at 8:59 AM ET

David Priebe, Chairman of Global Client Development

Earlier this year, the (re)insurance industry celebrated an abundance of capital. Buybacks and dividends were common, as carriers struggled to find productive uses for their extra cash. Only a few months later, we are in the midst of a financial catastrophe that is wreaking havoc on balance sheets and constraining carrier access to capital. And, the situation could worsen. A major catastrophe event could place substantial demands on (re)insurer capital in a climate where replenishment would be both time-consuming and costly.

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September 9th, 2008

Let ERM Decide When Capital Is Excessive

Posted at 6:26 PM ET

Joan Lamm-Tennant, Global Chief Economist and Risk Strategist

Excess capital is only excessive until you need it. Throughout the year, carriers have struggled to find uses for capital that has not seemed necessary, given the benign loss years that followed the 2005 storm season. Rates are down, retentions are up, and repatriation has been continual. Market conditions have overshadowed analytics in determining carrier behavior. But, aggressive repatriation may have been hasty. Looking to the future, buyback and dividend decisions could benefit from Enterprise Risk Management (ERM).

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