Posts Tagged ‘underwriting discipline’



April 22nd, 2009

Bermuda Update: Investment Asset Allocation Steady

Posted at 1:00 AM ET

Market Information Department
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The Guy Carpenter Bermuda Composite’s asset allocation did not change substantially from 2007 to 2008. An already conservative investment strategy left little room for more caution. Fixed income securities stayed at 75 percent from 2007 to 2008. Equity allocations were halved year-over-year, dropping from 4 percent of the aggregate portfolio in 2007 to 2 percent last year. Allocations to cash and short-term investments increased from 14 percent to 17 percent. While a “flight to quality” was not possible, a movement in that direction was discernable.

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April 21st, 2009

Bermuda Update: Earnings

Posted at 1:00 AM ET

Market Information Department
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The Guy Carpenter Bermuda Composite posted an aggregate comprehensive net loss of USD7.8 billion for 2008. The decline was driven largely by realized and unrealized investment losses of USD10 billion. Most reinsurers were able to generate underwriting profits, though they were substantially lower than in 2007 because of high losses from a busy catastrophe year and falling reinsurance rates. Fifteen of the 19 companies in the Bermuda Composite posted underwriting profits for the year.

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September 1st, 2008

Looking at a Downturn?

Posted at 10:16 AM ET

Peter Zaffino, President & CEO
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All eyes will be on January, 1 2009. As we approach the next renewal season, another round of rate decreases seems likely. The pace should be slower than it was through 2008, thanks to greater underwriter discipline than in previous downturns. Thus, even though the market has not been catastrophe-free, it has been able to absorb the losses, as the industry is well-capitalized. Fears of a mega-catastrophe and pressure from broader economic conditions should keep underwriters from assuming inadequately priced risk.

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