General Insurance Article - A.M.Best looks at reinsurer trends in US and Bermuda

 The reinsurance sector has been broadly characterized as being overcapitalized. The US and Bermuda market, a significant regional hub within this sector, also has been labeled with this generality. However, this market’s strength goes much deeper. It is true that risk-adjusted capital is strong, but the focus on prudent underwriting and pricing fundamentals has led to this achievement. Executive management teams have held the line, expecting to be paid adequately for the risks they take.

 Prudent reserving also remains a strength of the market. Many (re)insurance companies have been able to take advantage of redundant reserves and augment earnings through a period of diminishing underwriting and investment opportunities, according to a special report by the A.M. Best Co.

 Investment allocations have shifted as (re)insurers try to offset a prolonged low interest rate environment. Traditional (re)insurance companies are conservative by nature, allocating their investments with a large percentage in fixed-income investments. This strategy remains intact. However, there are subtle shifts in investment allocations, with precautionary migration toward alternative investments, hedge funds and equities as (re)insurers continue searching for adequate returns. This remains a challenge as investment yields appear likely to linger at historical lows for the next few years.

 Access a copy of this report here

Back to Index

Similar News to this Story

DB maturity means consultants must manage the end game
The dawn of a new era for the pensions industry, as defined benefit (DB) schemes reach maturity, is shifting the strategic focus of many schemes to th
Eight flaws in cyber insurance policies to refuse pay outs
Mactavish, the UK’s leading expert on insurance governance, has challenged insurers and brokers to guarantee that eight common flaws it has identified
Young drivers benefit from lower car insurance costs
The overall cost of running a car for young drivers has fallen by over 6% in the past six months, primarily driven by a decrease in the cost of fuel a

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.