Posts Tagged ‘profitability’
A key feature of GC Capital Ideas is its Videocast series. Here we review recent video posts:
From one of GC Capital Ideas’ more popular categories, we highlight the top ten Chart Room stories viewed during the first quarter of 2015:
1. Chart: Global Property Catastrophe ROL Index 1990 to 2015: The Guy Carpenter Global Property Catastrophe Rate on Line (ROL) index is presented for 1990 through 2015.
2. Chart: P&C M&A Activity 2006 to 2015: Chart presents property/casualty (P&C) merger and acquisition (M&A) activity primarily for United States and Bermuda-based companies over the past 10 years. The chart illustrates the number of deals and deal volume over that period.
3. Chart: Evolution of Dedicated Reinsurance Capital, 2013 to YE 2014: The evolution of dedicated sector capital is presented in this chart. Guy Carpenter estimates dedicated sector capital remained at near record levels having risen to approximately USD400 billion at year-end 2014 from traditional rated markets and all sources of alternative capital including sidecars, collateralized reinsurance vehicles and catastrophe bonds.
4. Chart: Regional Property Catastrophe ROL Index, 1990 to 2015: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.
5. Chart: European Property Catastrophe ROL Trends - 2007 to 2015: The chart presents the European Property Catastrophe Rate On Line (ROL) trends with correlating impact of catastrophe events for the period 2007 to January 1, 2015.
6. Chart: Alternative Capacity as a Percentage of Catastrophe Reinsurance Limit: The chart presents alternative capital capacity as a percentage of global property catastrophe reinsurance limit from 2008 to year-end 2014.
7. Chart: Top Ten Catastrophe Bond Transactions for 2014: The table lists the top ten catastrophe bond transactions that were completed in 2014.
8. Chart: Combined Ratio for Guy Carpenter Composite, Q3 2014: Chart presents combined ratio for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter, 2014.
9. Chart: Significant Insured Losses - 2011 to YE 2014: Reports losses by quarter.
10. Chart: Return On Equity For Guy Carpenter Reinsurance Composite, Q3 2014: Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2004 through third quarter, 2014.
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In the fifth installment of the Holistic Balance Sheet Management series, Russell Lee, Insurance Consultant, Mercer, shares his thoughts on how a holistic approach to capital management can benefit insurance companies in the face of challenging investment and underwriting conditions.
In the second video in the Holistic Balance Sheet Management series, Andrew Cox, Capital Optimization, Guy Carpenter and Niall Clifford, Financial Strategy Group, Mercer, explore how companies should approach investment risk and the link between investment strategy, risk appetite and reinsurance strategy. A key focus for insurance companies should be to link their investment strategy with their risk appetite metrics. While any increase in return on capital may seem very attractive, it is important that companies ensure that the risks they are taking are in line with their risk appetite and that they are aware of their constraints, allowing them to take risks in a measured way. Investment strategy should be considered alongside regulatory requirements, as a key aspect of Solvency II relates to how well each company understands the risks in its portfolio.
A holistic approach that optimizes the use of the two traditionally separate areas of balance sheet management within the current market environment has proven to be extremely challenging for non-life insurers. The key issue for non-life insurers is how to boost return on capital in a continuing low-yield environment. In the first of the Holistic Balance Sheet Management series, Andrew Cox, Capital Optimization, Guy Carpenter, and Niall Clifford, Financial Strategy Group, Mercer, discuss how insurance companies may optimize their capital while addressing their concerns over economic capital, earnings risk, ratings agency requirements and increasing constraints due to Solvency II.
A holistic approach that optimizes the use of the two traditionally separate areas of balance sheet management (reinsurance and investment strategy) can make a significant difference to (re)insurers’ financial results. (Re)insurers should seek to address both the asset and liability sides of the balance sheet in an integrated manner.