Posts Tagged ‘Hurricanes KRW’



January 8th, 2009

Europe: A Change of Focus

Posted at 1:00 AM ET

David Flandro, Senior Vice President
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European reinsurers are focused on two critical issues: residual exposure to risky assets and effective capital deployment. This is a stark change from the past two years, in which the return of capital to shareholders was the dominant priority for many. The excess capital positions of the years following Hurricanes Katrina, Rita, and Wilma have diminished in the face of worldwide market losses, and cedents now have heightened focus on reinsurer counterparty credit risk.

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January 5th, 2009

Cats and Credit Push Prices Up

Posted at 1:00 AM ET

Global Reinsurance Review January 2009

Reinsurance rate increases were moderate on average at the January 1, 2009 renewal. The Guy Carpenter World Rate on Line (ROL) Index rose 8 percent, in response to the dual pressures of a financial catastrophe and the second most expensive property catastrophe year on record. The degree to which prices increased was tempered by large capital positions at the beginning of 2008, enabling carriers to absorb the year’s losses, but this is where the generalizations end. Loss history, geography, and line of business led to wide differences in pricing. Expectations of another above-average storm year and the uncertainty surrounding the credit crisis underscore the need for continued capital management discipline in the coming year.

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