An analysis of the Guy Carpenter Global Reinsurance Composite through nine months of 2018 (the latest data available) shows Return on Average Equity at 7 percent, near the five-year average return of 8.1 percent.
Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2005 through year-end 2017.
How have 2017 losses and the last several years of declining rates impacted reinsurer profitability? Has increasing prevalence of retrocessional reinsurance, now provided primarily by convergence capital providers, had an impact? Part II.
Here we bring together recent Chart Room posts highlighting performance of the Guy Carpenter Global Reinsurance Composite.
Here we bring together recent Chart Room posts highlighting performance of the Guy Carpenter Global Reinsurance Composite.
Guy Carpenter has released an estimate of year-end reinsurance capital levels and results of the January 2018 reinsurance renewal.
According to the analysis, capital dedicated to reinsurance continued to grow in 2017 despite catastrophe losses. Due to ongoing excess supply and overall market resilience at January 1, rate firming was generally moderate and pricing shifts focused on client-specific justification.
Chart presents return on equity for the Guy Carpenter Global Reinsurance Composite, 2005 through third quarter, 2017.
Steve Underdal, Managing Director; Greg Bliss, Managing Director; Matt Walter, Senior Vice President and Blake Berman, Senior Vice President
Since 2010, the medical professional liability (MPL) industry has been navigating a soft market, with declining profitability, diminished investment gains and rising accident year operating ratios. Yet, reserve redundancies have kept calendar year combined ratios below 100 percent, allowing carriers to pay dividends to policyholders while maintaining favorable returns on equity. Recent trends in the MPL insurance industry, including more aggressive competition among carriers and a leveling off of frequency trends, are driving accident year combined ratios higher. Without the continued tailwind of favorable reserve development, current market rates could prove unsustainable, driving market hardening in the coming years.
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the third quarter of 2017.
