Posts Tagged ‘Revenues’



February 20th, 2013

Adapting to an Evolving Market of More Permanent Capital Market Capacity

Posted at 1:00 AM ET

ezbiansky_chris_biopotter_des_photograph1Christopher Ezbiansky, Mergers and Acquisitions Advisory - Americas and Des Potter, Mergers and Acquisitions Advisory - Europe, GC Securities*

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A new capital management paradigm is challenging the traditional reinsurance model. Historically, significant market losses from major catastrophic events and low investment yields were a catalyst for an improved rate environment. Faced with current economic conditions, reinsurers are finding it more difficult to generate adequate returns in excess of their cost of capital, and are seeing an increased competitive threat from alternative capacity from the capital markets. New money appears to be more permanent and therefore limits the firmness and duration of any improved rate environment. Catastrophe bonds, sidecars, structured industry-loss warranties and collateralized reinsurance vehicles are among the alternative market options. Hedge funds are also playing a more active role, with a couple of major names setting up reinsurance operations in Bermuda.

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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

Adapting to an Evolving Market of More Permanent Capital Market Capacity

Posted at 11:00 PM ET

ezbiansky_chris_biopotter_des_photograph1Christopher Ezbiansky, Mergers and Acquisitions Advisory - Americas and Des Potter, Mergers and Acquisitions Advisory - Europe, GC Securities*

Contact

A new capital management paradigm is challenging the traditional reinsurance model. Historically, significant market losses from major catastrophic events and low investment yields were a catalyst for an improved rate environment. Faced with current economic conditions, reinsurers are finding it more difficult to generate adequate returns in excess of their cost of capital, and are seeing an increased competitive threat from alternative capacity from the capital markets. New money appears to be more permanent and therefore limits the firmness and duration of any improved rate environment. Catastrophe bonds, sidecars, structured industry-loss warranties and collateralized reinsurance vehicles are among the alternative market options. Hedge funds are also playing a more active role, with a couple of major names setting up reinsurance operations in Bermuda.

Continue reading…

December 15th, 2010

Chart: Guy Carpenter Global Reinsurance Composite, Return on Revenue, 9 Months 2010

Posted at 1:00 AM ET

gc-global-composite-9-month-2010-ror

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