Joan Lamm-Tennant, Global Chief Economist and Risk Strategist Contact Excess capital is only excessive until you need it. Throughout the year, carriers have struggled to find uses for capital that has not seemed necessary, given the benign loss years that followed the 2005 storm season. Rates are down, retentions are up, and repatriation has been continual. Market conditions ... Continue Reading »
Reinsurance Markets
World Catastrophe Reinsurance Market 2008
Catastrophe reinsurance rates declined for the second year in a row. Price competition intensified as a result of abundant capital, lower than average catastrophe losses, and strong overall profitability. But, reinsurance rates are projected to decrease at a slower pace in 2009 than in 2008, as reinsurers face earnings pressure from a number of sources. According to the Guy ... Continue Reading »
Under Pressure: Rate Drops Slowed by Asset Squeeze
Christopher Klein, Global Head of Business Intelligence Contact The next renewal period may be four months away, but it is uppermost in everyone’s mind across the (re)insurance industry. Without a crystal ball, it is impossible to predict the market’s exact trajectory, but several trends have become evident in 2008. Absent a mega-catastrophe, rates likely will continue to trend ... Continue Reading »
Manage Non-Life Catastrophe Risk with Internal Models: Custom Strategies for Solvency II Compliance
The Solvency II standard model is nearing completion. Quantitative Impact Study Draft 4 (QIS 4) was released on April 1, 2008 and will run through July 2008. In QIS 4, the non-life catastrophe risk capital component of the solvency capital requirement (SCR) calculation has been modified substantially from QIS 3 and has become more complex. In particular, QIS 4 includes a ... Continue Reading »
Managing Prosperity: 2008 Bermuda Update Report
For the past 10 years, most Bermuda companies have outperformed the Standard & Poor’s (S&P) 500 in generating shareholder value. The Guy Carpenter Bermuda Reinsurance Composite has shown considerable book value and dividend growth. This financial performance has been driven substantially by Bermuda’s low tax rate, experienced executives and friendly regulatory reg ... Continue Reading »
