🚨 ‼️ Reinsurance is a business tool used to help control business risk exposures, remit tax-advantage premium monthly and always have access to premium funds.
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Choosing a solution that supports compliance with regulatory changes enables you to demonstrate adherence to both local and international standards, thereby enhancing your credibility.
It was important to demonstrate continued discipline in limit deployment, risk selection and other underwriting measures, as these efforts needed to be accounted for in renewal pricing. Read more about Jan. 1, 2024 reinsurance renewals here: https://bit.ly/3RPXZX5
Fitch Ratings has downgraded the global reinsurance sector outlook to ‘neutral’ from ‘improving’, citing the likelihood that the pricing cycle has peaked, though profitability is expected to stay strong in 2025 by historical standards.
“While further hardening of premium rates is unlikely in 2025, it could occur if there is significant loss activity in H2 24,” analysts cautioned.
Read more insights here: https://ow.ly/Olkf50ThhjY
The Gallagher Re Reinsurance Market Report for H1 2024 points to a robust reinsurance market, characterized by:
Strong profitability: The industry is experiencing robust underwriting profitability, with a record-low reported combined ratio of 84.5% and an improved underlying combined ratio of 93.6%. The underlying ROE significantly improved to 15.5%, well above the industry's cost of capital.
Capital growth: Global reinsurance dedicated capital reached USD 766 billion, a 5.4% increase from the restated full-year 2023 base. The growth was primarily driven by INDEX companies and non-life alternative capital.
Resilience: The industry's strong underlying ROE and ample capital buffers position it well to absorb potential headwinds, such as an active hurricane season or fluctuating interest rates.
Record low combined ratio: The reported combined ratio of 84.5% is the lowest since the report began in 2014, driven by lower attritional loss ratios, reduced natural catastrophe losses, and increased investment income.
Improved underlying ROE: The underlying ROE of 15.5% is driven by improved underwriting margins and higher running investment income, positioning the industry to navigate potential earnings volatility and create substantial shareholder value.
Growth in dedicated capital: The substantial growth in global reinsurance dedicated capital, reaching USD 766 billion, is primarily fueled by INDEX companies and non-life alternative capital.
Strong performance of INDEX companies: The INDEX companies, representing over 80% of the industry's capital, saw a 5.6% increase in capital, driven by strong net income and higher investment yields.
Reduced natural catastrophe losses: The report highlights a lower charge for natural catastrophe losses, contributing to the improved combined ratios.
Increased investment income: Higher investment yields, driven by rising interest rates, have boosted the industry's investment income and contributed to the improved profitability.
Positive outlook: The report suggests that the reinsurance industry is well-equipped to withstand future challenges and deliver sustained growth, thanks to its strong capital position, robust profitability, and resilient earnings.
Natalie van de Coolwijk
We are pleased to share our half-year 2024 Reinsurance Market Report.
Global reinsurers delivered another strong set of half-year results, with an ongoing improvement in underwriting profitability and a continued building of capital.
Download the Report in full: https://lnkd.in/eeRmM4-S
We are pleased to share our half-year 2024 Reinsurance Market Report.
Global reinsurers delivered another strong set of half-year results, with an ongoing improvement in underwriting profitability and a continued building of capital.
Download the Report in full: https://lnkd.in/eeRmM4-S
The pricing and capacity of reinsurance are influenced by various factors, including the level of risk, loss experience, and global market conditions. Our experienced underwriters ensure competitive pricing while maintaining our commitment to financial stability.
#KenyaRe
You need to know all the facts when it comes to running your business. This includes claims data, loss ratios, sales intelligence, and information on your reinsurance position.
#EFGWalkTheWalk#WhyEFG#Reinsurancehttps://bit.ly/3kGyF9x