Global reinsurance industry sees 8% boost in H1
Capital in the global reinsurance industry has increased 8% in H1 2019 to US$559 billion from US$518 billion at the end of last year.
This was according to findings from the Reinsurance Market Report from Willis Re, the reinsurance business of global advisory company Willis Towers Watson.
The largest component was capital of the 36 reinsurance companies tracked in the Willis Reinsurance Index, which went up 11% to US$440 billion due to falling bond yields and rising equity markets.
The return on equity (RoE) for natural catastrophe (nat cat) losses and prior year reserve releases jumped 13.9% from 8.5% at the middle of 2018.
Normalising for nat cat losses and removing the benefit from reserve, meant an underlying RoE of 10.8% or 4.2% excluding investment gains.
James Kent, global chief executive for Willis Re, said looking behind the headline figures revealed a positive direction for reinsurers so far this year with modest reductions in non-catastrophe combined and expense ratios.
“This improvement is supported by the positive trajectory seen in 2019 market pricing across many lines,” Kent said.
“The slowdown in reserve releases continues, however, so in the months and years ahead reinsurers will need to further realize these trends.”
AUTHOR
Chris Dastoor
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
