General Insurance Article - Global reinsurer capital stable on an underlying basis


Aon Benfield, today launches the latest edition of its Aon Benfield Aggregate (ABA) report, which analyses the financial results of 28 major reinsurers in the first half of 2015.

 Aon Benfield estimates that global reinsurer capital totaled USD565 billion at June 30, 2015. The headline reduction of 2% relative to the end of 2014 was driven by strengthening of the US Dollar over the intervening period. On an underlying basis, the capital available to support reinsurance underwriting was flat, with retained earnings offsetting unrealized losses on bond portfolios.
  
 Alternative capital continues to grow, but at a slower pace than before; the total rose by 6% to USD68 billion.
 The firm's latest study found that shareholders’ funds reported by the ABA companies fell by 4% to USD332 billion at June 30, 2015, but the total was up slightly at constant exchange rates, driven by solid earnings.
  
 Further key findings relating to the 26 publicly-listed holding companies in the ABA* include:
     
  1.   Premium growth is being achieved. In original reporting currencies, two-thirds of the ABA constituents achieved growth in property and casualty (P&C) premiums in the first half of 2015.
  2.  
  3.   Underwriting performance remains strong, aided by low global catastrophe losses and favourable prior year reserve development. The combined ratio stood at 91.1%.
  4.  
  5.   Investment returns are still under downward pressure, with little prospect of relief in the near term. The ordinary yield has declined to 2.8%.
  6.  
  7.   Headline return on equity has eroded modestly, but remains resilient at 10.7% (annualised).
  8.  
  9.   Sector consolidation continues, as companies look to achieve the advantages of scale and diversification.
 Mike Van Slooten, Head of Aon Benfield’s International Market Analysis team, said:
 “The landscape of the reinsurance industry is changing, driven by market dynamics in the developed world and the rising influence of Asian capital. Discerning reinsurance buyers will continue to benefit in this environment, but the level of complexity is increasing and understanding broader industry trends has never been more important”.
  
  
 Read the report: below
  

Back to Index


Similar News to this Story

Call for simplification of EU cybersecurity regulation
Insurance Europe has welcomed the European Commission’s review of the Cybersecurity Act (CSA) and the forthcoming digital omnibus initiative, supporti
7 California wildfire lessons learnt for European insurers
The devastating January 2025 wildfires in Los Angeles, which destroyed over 16 000 structures and caused insured losses of approximately USD 40 billio
Do not be left high and dry this summer
Aviva is urging caution as data reveals a correlation between warm weather and fire claims. Number of garden fire claims is already significantly high

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

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