Posts Tagged ‘macroeconomic’



April 24th, 2014

Capital Stewardship Options

Posted at 1:00 AM ET

Here we bring together recent GC Capital Ideas stories that have presented options that good capital stewards in the reinsurance industry are currently considering for deployment of excess capital. 

Maintaining the Status Quo: One of the biggest challenges facing reinsurers is deciding how to deploy excess capital to generate a return that meets or exceeds the expectation of investors or shareholders.

Read the article>> 

 

Return to Shareholders:  As a principle, excess capital should be returned to shareholders in periods of low return opportunity (particularly below cost of capital) while more capital should be retained/deployed during periods that offer higher returns. The chart here on the Global Reinsurance Composite Return of capital shows that reinsurers have been relatively disciplined over the last eight years, with carriers returning more capital when the pricing environment has softened.

Read the article>> 

 

Organic Growth: With an abundance of excess capital, negligible growth in global reinsurance spend and the pricing outlook continuing to soften, one of the biggest challenges facing reinsurers is deciding how to deploy this excess capital to generate a return that meets or exceeds the expectation of investors or shareholders. Here we consider the option of organic growth.

Read the article>> 

 

M&A - Grow/Diversify by Product Line: As carriers explore M&A opportunities to grow in the current environment, there is strong interest from potential buyers looking for bolt-on opportunities rather than transformational transactions. Although this demand has not to-date triggered a significant increase in M&A transactions, the ingredients for more activity are now in place.

Read the article>> 

 

M&A - Grow/Diversify by Territory: With growth opportunities limited in mature markets, many insurers are looking to emerging markets for future expansion, in particular China, Southeast Asia and Central and Latin America. The chart here highlights gross written premium growth in emerging markets compared to developed markets from a 2003 base.

Read the article>> 

 

M&A: Achieve Meaningful Scale in Reinsurance: In a reinsurance market with abundant excess capital and where most reinsurance programs are oversubscribed, the need for a meaningful line size or differentiated underwriting contribution has never been more relevant.

Read the article>> 

 

M&A: The Evolving Legacy (Run-Off) Market: The recent completion by legacy solution specialists of a number of acquisitions in the live insurance space could be a watershed moment for the standalone run-off market. The original business concept of a run-off manager was a pure focus on legacy business - to achieve finality in legacy claims and manage the outstanding book of legacy business in the same cost efficient way that an insurer would manage a renewal book of business.

Read the article>> 

 

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

 

Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities Corp., MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.

March 26th, 2014

What is Food Security? Part III: Putting It into Practice and a Look to the Future

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Putting it into practice

In several Asian countries there are already examples of attempts to alleviate the physical, social and economic factors that hamper food security.

Continue reading…

March 25th, 2014

What is Food Security? Part II

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Social: Managing the supply side.

A challenge in many regions is the transport from the farm of the right food to the consumer without physical loss or spoilage. Putting transit losses aside, there is a question of getting the “correct” food and influencing the supply chain.

Continue reading…

March 24th, 2014

What is Food Security? Part I

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Food security exists when all people, at all times, have physical, social and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.¹

Fundamentally food has to be safe, nutritious and available in sufficient quantity. On a global scale these are always achievable. It is at a country or smaller geographic territory-level where problems often arise. These concepts encompass the first part of the opening statement and relate to access:

Continue reading…

January 22nd, 2014

Chart: Increasing Gap Between GDP Growth and Reinsurance Limit in Asia Pacific

Posted at 1:00 AM ET

The chart shows that growth in reinsurance catastrophe limit in the Asia Pacific region has clearly not kept pace with economic growth since 2006. Stronger rates of economic growth in such emerging markets mean the gap between economic and insured losses has the potential to increase further. Continue reading…

January 21st, 2014

Chart: Economic and Insured Losses in Advanced and Emerging Economies

Posted at 1:00 AM ET

The chart shows how small a proportion of losses were insured in both advanced and emerging markets between 2002 and 2011. Continue reading…

January 20th, 2014

Chart: Gap Between Economic and Insured Losses

Posted at 1:00 AM ET

Approximately 70 percent of global economic losses from natural catastrophes were uninsured between 1980 and 2013.
Continue reading…

October 21st, 2013

Increasing Strategic Advisory Needs of Large European Insurers and Reinsurers

Posted at 1:00 AM ET

paire_eric_thumbEric Paire, Head of Global Partners & Strategic Development EMEA

Contact

Major European international insurance companies face common challenges, issues and external constraints on their way to profitable growth. How can external strategic advice help through the process?

Continue reading…

October 21st, 2013

Baden-Baden Reinsurance Symposium Calls On Industry To Do More To Meet Client Needs

Posted at 12:10 AM ET

Guy Carpenter hosted “Transferring Risk - Is the Insurance and Reinsurance Industry Adequately Serving its Clients?” the Reinsurance Symposium held in Baden-Baden on October 20, 2013. The event explored a range of topics including: the gap between economic and insured losses; how new capital entering the market can move beyond property catastrophe; and measures to provide coverage for new and emerging risks.

Continue reading…

October 14th, 2013

Capital Stewardship Option: Organic Growth

Posted at 1:00 AM ET

With an abundance of excess capital, negligible growth in global reinsurance spend and the pricing outlook continuing to soften, one of the biggest challenges facing reinsurers is deciding how to deploy this excess capital to generate a return that meets or exceeds the expectation of investors or shareholders. Today we consider the option of organic growth.

Continue reading…