From one of GC Capital Ideas’ more popular categories, we highlight the top ten Chart Room stories viewed during the second quarter of 2014:
1. Chart: Global Property Catastrophe ROL Index: The Guy Carpenter Global Property Catastrophe Rate on Line index is presented for 1990 through 2014. The index fell by 11 percent at January 1, 2014.
2. Chart: Rate Movements by Business Segment: Reports rate movements at January 1, 2014.
3. Chart: Regional Property Catastrophe ROL Index: The chart shows the indexes for United States, United Kingdom, Asia Pacific and Europe.
4. Chart: Evolution of Dedicated Reinsurance Capital, 2012 - YE 2013: The evolution of dedicated sector capital is presented below. Guy Carpenter estimates this rose marginally in 2013 to USD322 billion at year-end as underwriting profits from low catastrophe claims and convergence capital inflows offset unrealized losses, sustained share buybacks and dividend payments.
5. Chart: Chile Holds Spot on Most Expensive Earthquakes for Insurers: In light of April’s 8.2 magnitude earthquake in Chile we highlight a spring 2013 GC Capital Ideas table ranking the most expensive earthquakes for insurers. A seismic event in 2010 put the South American nation on that list.
6. Chart: Confirmed Annual U.S. Tornado Activity: The chart reports confirmed annual U.S. tornado activity from 1950 to 2013 of F2 or higher strength with wind speeds of 113 mph and higher on the Fujita scale.
7. Chart: 2013 Catastrophe Bond Transactions: This table lists the 144A property/casualty catastrophe bond transactions that were completed in 2013.
8. Chart: Reserve Cycle Measured by Accident Year: In this chart Guy Carpenter is looking at the reserve cycle in a different way: by studying the booked ultimate loss by accident year. We choose accident year because actuaries typically analyze losses according to their year of accident. The estimate of the ultimate loss for a particular accident year ideally should not change over time if the initial estimate was correct. However, using U.S. industry data, we find that as a particular accident year is re-estimated periodically, a cycle appears.
9. Chart: Risk Capital Issued by Quarter: Property/casualty catastrophe bonds issuance in the period 1997 to 2013.
10. Chart: Catastrophe Bond Issuance and Capital Outstanding: Issuance reached a record high of USD7.1 billion, surpassing 2007’s total. Risk capital outstanding also reached an all-time high of USD18.6 billion last year.
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