Meeting in the spa town of Baden-Baden for their renewal discussions, insurers and reinsurers are exercised by the persisting soft market – but are in denial of the dangers ahead, writes Garry Booth.
A new Geneva Association report has added further evidence to support calls for the differential treatment between insurers and banks. Garry Booth reports.
Insurance buyers should be pleased to see that the reinsurers suffered a flat year end renewal as competition remained high, Garry Booth reports.
This, the second, issue of Commercial Risk Europe appears to be dominated by one common theme. That is, the ever-rising demand from risk and insurance managers for help with the ever-rising volume of new and emerging risks.
Flagstone Re continued the good news from Bermuda for insurers and reinsurers as it reported a record profit for 2009, based on a much improved combined ratio and big turnaround in investment fortunes following a big de-risking of its portfolio.
Montpelier Re Holdings, the Bermuda-based short-tail reinsurance and specialty lines carrier, delivered a record net profit in 2009 of $464m against a loss of $145.5m in 2008 and continued the recent trend among the Bermuda market to hand back capital to investors.
Aspen Insurance Holdings, the Bermuda-based insurance and reinsurance group, confirmed the buoyant mood in the international market, as its board authorised a new share repurchase program for up to $400m over two years on the back of net profits up almost 357% for 2009 against 2008.
Swiss Re almost put its recent past behind it with the announcement last week of profits of CHF506m for 2009, compared to the investments-driven loss of CHF864m it racked up in 2008. A dividend of CHF1 is proposed for 2009, compared to 10 cents in 2008.
Buyers of credit insurance can breathe easier in 2010 as capacity and stability return. But rates will continue to rise, reports Garry Booth.
Leading international brokers told Garry Booth that reinsurance companies failed to force a hardening in terms and conditions at the recently completed year-end renewals and insurance buyers can expect another competitive year as a result.