AM BestTV at Rendez-Vous: ‘The Future Looks Bright,’ Say (Re)Insurance Industry Executives
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 10, 2019--
In this AM BestTV episode from the 2019 Les Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, attendees say the reinsurance market has stabilized after a difficult period marked by declining profitability, lower return-on-equity (ROE) and significant natural catastrophes. Click on http://www.ambest.com/v.asp?v=rvswrap2919 to view the entire program.
Rates are rising and traditional reinsurers are protecting their balance sheets with alternative capital while earning fee income.
“After several years of declining profitability, lower and lower ROEs, coupled with 2017 and 2018 having significant events that hurt the earnings of the sector, today there is real stabilization in the reinsurance market,” said Stefan Holzberger, chief ratings officer, AM Best. “Rates are improving. The traditional market is utilizing alternative capital and capacity to protect its balance sheet and earn fee income through shedding risk off to sidecars, so to allow for a real alignment of interests. AM Best believes that at the January 2020 renewals, there will be a better rate environment that allows for more appropriate ROEs.”
Jerome Haegeli, group chief economist, managing director, Swiss Re, said the outlook for the industry is promising.
“Look at insurance market premiums overall. Last year was a record high in terms of insurance premiums earned for the primary industry. On the pricing front, especially on commercial prices, there is also some rate hardening, which I think shows that there are very positive drivers in our industry,” he said.
Other people that appear in this episode:
To access a copy of AM Best’s recent Best’s Market Segment Report on the global reinsurance industry, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277679.
For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit http://www.ambest.tv/rvs19.
Recent AM BestTV episodes include:
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at http://www.ambest.tv.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Company, Inc.and/or its affiliates. ALL RIGHTS RESERVED.
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SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 09/10/2019 12:26 PM/DISC: 09/10/2019 12:26 PM