Posts Tagged ‘ROL’
April 22nd, 2013
Posted at 1:00 AM ET
Here we review recent GC Capital Ideas posts that have focused on 2013 reinsurance pricing trends.
April 1 Renewals See Reinsurance Pricing Stabilize Amid Dynamic Capital Growth: Guy Carpenter reports that dynamic capital growth and ample reinsurance capacity resulted in a relatively stable renewal at April 1, 2013. In a briefing released today, Guy Carpenter comments that the convergence of traditional and alternative capital sources is changing the marketplace, with non-traditional capacity now making up an estimated 14 percent of global property catastrophe limit.
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Japan Values Long-Term Continuity: As in every past year, Japanese (re)insurers look to the January 1, 2013, reinsurance renewal for guidance as to the likely state of the market for their renewals at April 1. This year they will have been encouraged with a market characterized by excess capital, overcapacity and easing prices for loss-free business. This scenario is evidenced by the Guy Carpenter Global Property Catastrophe Reinsurance Rate on Line index, which fell at renewal, albeit marginally. This environment will come as a welcome change to Japanese buyers, who have fought their way through the last two renewals against adverse market conditions caused by a series of significant losses in the Asia Pacific region.
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Chart: Guy Carpenter Regional Rate on Line Index, January 2013: There was variation regionally in the Guy Carpenter Regional Property Catastrophe Reinsurance Rate on Line (ROL) index. U.S. property catastrophe pricing was most affected by the landfall of Superstorm Sandy while other regions were flat to down.
Read the article >>
Chart: Guy Carpenter Global Rate on Line Index, January 2013: The Guy Carpenter Global Property Catastrophe Reinsurance Rate on Line (ROL) index fell marginally at the January 1, 2013, renewal. This is the seventh consecutive annual renewal in which changes to the index have equaled 10 percent or less, indicating a global market with capacity appropriate to meet demand.
Read the article >>
January 1, 2013 Renewals Bring Stable Reinsurance Pricing: Guy Carpenter reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. In its 2013 global renewal report, The Route to Profitable Growth, Guy Carpenter finds that the January 1, 2013 renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility. The market was supported by a combination of factors including lower than normal catastrophe losses during the first nine months of 2012, new reinsurance capacity and record-high levels of capital.
Read the article >>
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Category: Property
Tagged: Catastrophe, Guy Carp, Japan, Property, Regional ROL Index, Reins Markets, reinsurance rates, renewal, renewals, ROL, US, World ROL Index
February 20th, 2013
Posted at 1:00 AM ET

Christopher 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…
Category: Capital Markets, Property
Tagged: alternative risk transfer, cap mgmt, Capital Markets, Catastrophes, Ezbiansky (Chris), GC Securities, Global Composite, Guy Carp, investment, macroeconomic, Potter (Des), Property, Reinsurance, Reinsurance Composite, reinsurance rates, Revenues, ROL
February 19th, 2013
Posted at 1:00 AM ET
Here we rank the most viewed GC Capital Ideas Chart Room entries of the last half year.
1. Chart: Guy Carpenter Global Rate on Line Index, January 2013: The Guy Carpenter Global Property Catastrophe Reinsurance Rate on Line (ROL) index fell marginally at the January 1, 2013, renewal. This is the seventh consecutive annual renewal in which changes to the index have equaled 10 percent or less, indicating a global market with capacity appropriate to meet demand.
View the chart >>
2. Chart: Guy Carpenter Regional Rate on Line Index, January 2013: There was variation regionally in the Guy Carpenter Regional Property Catastrophe Reinsurance Rate on Line (ROL) index. U.S. property catastrophe pricing was most affected by the landfall of Superstorm Sandy while other regions were flat to down.
View the chart >>
3. Chart: Global Significant Insured Losses, 2011 to Q4 2012: 2012 insured losses in aggregate were “normal.”
View the chart >>
4. Chart: U.S. and Bermuda Property-Casualty M&A Activity, 2004 to 2012: For the property and casualty sector, market consolidation was at the periphery.
View the chart >>
5. Chart: Long-Term Evolution of Shareholders’ Funds, 1998 to Q3 2012: Dedicated reinsurance capital was at a record high immediately prior to Superstorm Sandy.
View the chart >>
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* Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities Corp., a U.S. registered broker-dealer and member FINRA/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., which is authorized and regulated by the Financial Services Authority. 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 an offer to buy any security, financial instrument, reinsurance or insurance product. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. **GC Analytics is a registered mark with the U.S. Patent and Trademark Office.
Category: Chart Room
Tagged: Catastrophe, Chart Room, mergers, Property, Regional ROL Index, reinsurance rates, ROL, SHF, World ROL Index
January 9th, 2013
Posted at 1:00 AM ET
There was variation regionally in the Guy Carpenter Regional Property Catastrophe Reinsurance Rate on Line (ROL) index. U.S. property catastrophe pricing was most affected by the landfall of Superstorm Sandy while other regions were flat to down.
Continue reading…
Category: Chart Room, Property
Tagged: Catastrophe, Chart Room, Continental Europe, Guy Carp, Property, Regional ROL Index, reinsurance rates, renewal, ROL, UK, US
January 8th, 2013
Posted at 1:00 AM ET
The Guy Carpenter Global Property Catastrophe Reinsurance Rate on Line (ROL) index fell marginally at the January 1, 2013, renewal. This is the seventh consecutive annual renewal in which changes to the index have equaled 10 percent or less, indicating a global market with capacity appropriate to meet demand.
Continue reading…
Category: Chart Room, Property
Tagged: Catastrophe, Chart Room, Guy Carp, Property, reinsurance rates, renewal, ROL, World ROL Index
January 3rd, 2013
Posted at 1:15 PM ET
Guy Carpenter’s 2013 Reinsurance Renewal Report Executive Summary was discussed at a press briefing held in London on January 3. It reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. Guy Carpenter found that the January 1, 2013, renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility.
Continue reading…
Category: Casualty, Property, Reins Markets, Top Stories
Tagged: capital, Casualty, Catastrophe, David Flandro, Europe, Guy Carp, mergers, nat cat, Nick Frankland, Property, Reins Markets, reinsurance rates, renewal, risk management, ROL, World ROL Index
January 3rd, 2013
Posted at 12:05 AM ET
Guy Carpenter reports that the reinsurance sector enters 2013 equipped with ample dedicated capital and stable pricing. In its 2013 global renewal report, The Route to Profitable Growth, Guy Carpenter finds that the January 1, 2013 renewals took place against a stable backdrop, with only loss-affected lines and select regions experiencing price volatility. The market was supported by a combination of factors including lower than normal catastrophe losses during the first nine months of 2012, new reinsurance capacity and record-high levels of capital.
Continue reading…
Category: Casualty, Property, Reins Markets, Top Stories
Tagged: capital, Capital Markets, Casualty, Catastrophe, catastrophe bonds, David Flandro, flood, Guy Carp, Lara Mowery, mergers, nat cat, Property, Regulation, Reins Markets, reinsurance rates, renewal, ROL, Superstorm Sandy, US, Windstorm, World ROL Index
October 29th, 2012
Posted at 5:00 PM ET
October 30, 2012:
At the time we were publishing our 2011 Asia Pacific Catastrophe report, there was a growing realization that losses from the Thai flooding ongoing at the time were going to be significant. The Thai flood losses came at the end of a run of losses in the Asia Pacific region that were large, unprecedented in recent times and possibly unexpected by many market participants.
Continue reading…
Category: Property
Tagged: Asia Pac, Asia Pacific, Australia, Catastrophe, Catastrophes, flood, Global Composite, Guy Carp, Japan, macroeconomic, nat cat, New Zealand, Property, Reins Markets, Reinsurance Composite, ROL, Thailand, World ROL Index
October 3rd, 2012
Posted at 1:00 AM ET
David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President and Lucy Dalimonte, Senior Vice President
Contact
In addition to the challenging macroeconomic environment, the sector has had to contend with heavy catastrophe losses over the last few years, particularly in areas not previously considered peak risks. Since 2010, (re)insurers have been hit by powerful earthquakes in Chile and New Zealand and devastating floods in Thailand and Australia. The result has been unexpectedly expensive “cold spot” losses at a time of increased insurance demand in regions such as emerging Asia and Latin America. Furthermore, the lack of catastrophe modeling solutions in emerging markets has raised concerns that (re)insurers do not currently possess an adequate understanding of the scale and nature of losses that can occur in these territories. In contrast to 2011, global catastrophe activity has been relatively light so far in 2012.
Continue reading…
Category: Property
Tagged: Asia Pacific, Australia, Catastrophes, David Flandro, Earthquake, emerging markets, flood, Guy Carp, Latin America, nat cat, New Zealand, ROL, US, World ROL Index
September 9th, 2012
Posted at 11:00 PM ET

Christopher 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…
Category: Capital Markets, Property
Tagged: alternative risk transfer, cap mgmt, capital, Capital Markets, Catastrophes, Ezbiansky (Chris), GC Securities, Global Composite, Guy Carp, investment, macroeconomic, Potter (Des), Property, Reinsurance, Reinsurance Composite, reinsurance rates, RendezVous2012, Revenues, ROL