Posts Tagged ‘investment gains’



September 27th, 2012

Growing Interest Rate Sensitivity

Posted at 1:00 AM ET

David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President and Lucy Dalimonte, Senior Vice President

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Although (re)insurers’ investments in higher-grade fixed income securities have calmed nerves for now, it is only logical to expect an increase in interest rate sensitivity for portfolios with lower yields to maturity. This creates the potential for negative balance sheet impacts should interest rates rise suddenly. Continue reading…

September 26th, 2012

Eurozone Debt Crisis and the “Flight to Quality”

Posted at 1:00 AM ET

David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President and Lucy Dalimonte, Senior Vice President
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A prominent effect of the global slowdown has been pressure on countries’ tax revenues and difficulty in financing national budgets. The southern European periphery and Ireland have been particularly susceptible to heightened risk premia. While Greece obtained a funding package from the European Union and the International Monetary Fund (IMF) in March, it has been speculated that the likes of Spain and Italy are simply “too big to save” given current central bank and IMF resources in a similar event (1).

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September 14th, 2012

Lloyd’s Operating Performance: Part II

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
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Investment Performance

Although the 2011 investment return of 1.9 percent was weak relative to previous years, Lloyd’s conservative investment strategy has partially insulated it from some of the more damaging volatility seen across a number of markets since the onset of the financial crisis in 2008 and continuing through 2011.

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September 13th, 2012

Lloyd’s Operating Performance: Part I

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
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After experiencing its single biggest catastrophe year ever in 2011, Lloyd’s expects market conditions to remain tough in 2012. Fears of a double-dip recession have made investors very cautious, particularly in Europe, and the Eurozone crisis has slowed insurance growth in the region. Looking forward, Lloyd’s has warned that the difficult global economic conditions may mean that the insurance cycle will be slower to turn than in the past.

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September 9th, 2012

Guy Carpenter Details Top Risks for (Re)Insurance Industry in Mid-Year Market Report

Posted at 11:30 PM ET

Guy Carpenter released its mid-year market report, which addresses the top risks (re)insurers face as they seek profitable growth.

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February 10th, 2011

GC Podcast 15 - Macroeconomic Factors Impacting the Reinsurance Sector

Posted at 1:00 AM ET

flandro_podcastGuy Carpenter Global Head of Business Intelligence David Flandro discusses the various macroeconomic forces currently impacting the reinsurance sector.  The forces discussed in this new GC Capital Ideas podcast include the low interest rate environment, disinflation, capital position and  European sovereign debt.  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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February 9th, 2011

GC Podcast 14 - 3rd Q 2010 Reinsurance Sector Financials, Preview of 4th Q

Posted at 1:00 AM ET

flandro_podcastGuy Carpenter Global Head of Business Intelligence David Flandro discusses 3rd Quarter 2010 reinsurance sector financials, their impact on January 1 renewals and a preview of 4th Q data 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.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Click here to download an iPod-compatible version of the interview >>

Click here to listen to other GC Capital Ideas Podcasts >>

Click here to read additional GC Capital Ideas articles written by David Flandro >>

Click here to register to receive e-mail updates >>

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
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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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February 7th, 2011

Guy Carpenter European Reinsurance Composite: 3rd Q 2010

Posted at 1:00 AM ET

flandro_davidDavid Flandro, Global Head of Business Intelligence
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Net income for Guy Carpenter’s European Reinsurance Composite grew by 38 percent for the first nine months of 2010 relative to the prior-year period, despite USD5.7 billion of incurred catastrophic losses. As with the broader composite, these losses were mostly related to the Chilean Earthquake, Windstorm Xynthia, the Deepwater Horizon oil rig explosion and the New Zealand Earthquake. They contributed 11.4 percentage points to the Composite’s combined ratio of 97.7 percent.

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October 25th, 2010

Dark Clouds Ahead? Factors Influencing the European Rate Environment

Posted at 1:00 AM ET

frankland_nick_gcciNick Frankland, CEO of European Operations
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The first renewal of 2011 is right around the corner, and as always at this time of year, the sport of reinsurance rate forecasting has begun. It is an uncertain exercise, of course, as a late-year mega-catastrophe could change the market almost immediately, but given today’s rate environment in Europe, it looks like the new year will bring another cedant-advantaged renewal. Capital is abundant across the industry, as (re)insurers have endured an active catastrophe year with help from reserve releases and investment gains.

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