Posts Tagged ‘fin cat’



October 7th, 2009

Guy Carpenter Fifth Annual Specialty Insurance Program Issuing Carrier Survey, Part I: A Steady Marketplace

Posted at 12:30 AM ET

Carl Bach, Managing Director and John Barrows, Vice President
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The Program Administrators and Managing General Agents (PA/MGA) market has remained remarkably consistent from 2008 to 2009, despite the outbreak of the worst financial crisis in more than 70 years. While the number of respondents perceiving market growth has declined since last year, the outlook remains quite upbeat, especially given the year’s tumultuous market conditions.

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September 28th, 2009

GC Podcast 10 - Financial Catastrophe (David Lewin)

Posted at 9:00 AM ET

podcast_lewinDavid Lewin, Head of the European Casualty Specialty, discusses the impact of monetary and non-monetary inflation in this new GC Capital Ideas podcast. Click the audio player below to listen to the interview, or download the interview in a file that will work with your iPod.

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September 24th, 2009

Casualty Specialty Update: The Credit Crunch and Reinsurance

Posted at 1:00 AM ET

casualtyDavid Lewin, Managing Director
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When problems in the subprime mortgage market erupted into a full financial catastrophe last year, conventional wisdom suggested that property and casualty (P&C) insurance companies would suffer. The culprit, many believed, would not be investments in mortgage-backed securities (MBS) like the life insurers. Rather, it would be the possibility of slipped bond ratings because of problems with bond insurers, ultimately lowering the value of the bonds held in P&C investment portfolios. The increase in insured losses as a direct result of subprime and the ensuing credit crunch would certainly drive P&C companies to have poor returns, the thinking continued. Even at the mid-point of 2008, talk of a turn in the market began to percolate.

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September 21st, 2009

World Catastrophe Reinsurance Market 2009: A Changing Property-Catastrophe Reinsurance Industry

Posted at 1:00 AM ET

worldcatChristopher Klein, Global Head of Business Intelligence
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Evolution of the Property-Catastrophe Reinsurance Market

This year’s 8 percent Guy Carpenter World ROL Index increase differs profoundly from the 65 percent surge that followed Hurricane Andrew and the 24 percent hike following the terror attacks of September 11, 2001 in the United States. Even after losing 18 percent of its aggregate capital following the 2008 financial catastrophe, reinsurers were unable to push for the high rates that some expected. The evolution of the reinsurance industry over the past two decades suggests that carriers have become much more adept at managing risk and capital, making it easier to absorb shock losses and manage the cost to transfer risk.

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September 21st, 2009

Chart: Evolving Catastrophe Reinsurance Market

Posted at 12:59 AM ET

worldcat_figure_5

This year’s 8 percent Guy Carpenter World ROL Index increase differs profoundly from the 65 percent surge that followed Hurricane Andrew and the 24 percent hike following the terror attacks of September 11, 2001 in the United States. Even after losing 18 percent of its aggregate capital following the 2008 financial catastrophe, reinsurers were unable to push for the high rates that some expected. The evolution of the reinsurance industry over the past two decades suggests that carriers have become much more adept at managing risk and capital, making it easier to absorb shock losses and manage the cost to transfer risk.

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September 15th, 2009

A Stable Market Prepares for 2010

Posted at 1:00 AM ET

zaffinosmallPeter Zaffino, President and CEO
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At this time last year, the reinsurance market was vastly different. A financial catastrophe and major hurricane occurred and changed the way (re)insurers viewed risk. As both events receded, our industry was left with profound uncertainty. More than being concerned about the direction of reinsurance rates at the January 1, 2009 renewal, carriers worried that a widespread capital shortage was imminent, impairing their abilities to assume and transfer risk. Despite the severity of the financial and natural catastrophes the reinsurance market proceeded in an orderly fashion, with property-catastrophe rates up 10 percent to 15 percent on average and other segments not significantly impacted.

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September 14th, 2009

World Catastrophe Reinsurance Market 2009: Executive Summary

Posted at 1:00 AM ET

worldcatChristopher Klein, Global Head of Business Intelligence
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Reinsurance rates increased by 8 percent through the 2009 reinsurance renewals, as measured by the Guy Carpenter World Catastrophe Rate on Line (ROL) Index. Upward pressure came largely from the impact of the 2008 financial catastrophe on reinsurers’ balance sheets, which was exacerbated by the effects of Hurricanes Gustav and Ike. At the January 1, 2010 renewal, reinsurance rates are likely to show little movement, unless a major property catastrophe or financial shock occurs.

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September 8th, 2009

Guy Carpenter Briefing Finds Rising Interest Rates Could Affect Reinsurers’ Claims-Paying Ability over Long Term, Industry Stable despite Lingering Effects of Financial Crisis

Posted at 12:30 AM ET

casualtyA briefing published today by Guy Carpenter & Company, LLC looks ahead to the possible effects of inflation on long-tail reinsurance, as well as the impact of the credit crunch on reinsurers in the wake of the subprime mortgage crisis. The briefing, Casualty Specialty Update, examines the twin pressures that inflation and the global credit crunch are exerting on the global casualty reinsurance industry.

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September 7th, 2009

Stability Returns

Posted at 6:01 AM ET

zaffino_013_croppedPeter Zaffino, President and CEO
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Last year the conversations at Monte Carlo were driven by a mixture of factors. Reinsurance pricing was decreasing in response to the reduced loss activity. Capital was being returned to shareholders as reinsurers withdrew capacity rather than accept terms that did not meet their own internal hurdle rates. Concerns were growing about the implications of the unfolding global financial crisis and whether the problems that had affected the banks would have a material impact on the insurance and reinsurance industry.

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