Captive International’s Post

This morning we published the H1 2024 Reinsurance Market Report. Want to understand the current state of the reinsurance market? Click the link below. Let me know if you like to discuss.

GallagherRe's 2024 Reinsurance Market Report provides interesting insight on reinsurance capacity and reinsurer profitability - all of which directly influences capacity and pricing in the insurance market.

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

This report provides in-depth analysis of the capital and profitability of the reinsurance industry!

Discover the intricacies of asset-intensive long-term reinsurance in Bermuda and gain valuable insights into the use of collateral structures. Check out our latest report for a comprehensive overview! https://lnkd.in/d3hwN_j #BermudaReinsurance #LongtermReinsurance #Reinsurance

AM Best upgrades outlook for global reinsurance industry to ‘positive’. The agency cites the robust profit margins along with higher attachment points and tighter terms and conditions that followed a period of drastic repricing. https://lnkd.in/e-8q3TJG #captive #captiveinsurance

AM Best upgrades outlook for global reinsurance industry to ‘positive’. The agency cites the robust profit margins along with higher attachment points and tighter terms and conditions that followed a period of drastic repricing. https://lnkd.in/e2YqJNzc #captive #captiveinsurance

AM Best upgrades outlook for global reinsurance industry to ‘positive’. The agency cites the robust profit margins along with higher attachment points and tighter terms and conditions that followed a period of drastic repricing. https://lnkd.in/egKhVBYp #captive #captiveinsurance

In our pursuit of excellence, we go #BeyondFinancialMetrics when selecting reinsurance partners. We prioritize forging alliances with #reinsurers renowned for their sterling #ReputationAndTrackRecord in the industry. Through meticulous #MarketAnalysis, we assess their performance, reliability, and responsiveness, ensuring they align with our commitment to integrity and professionalism. #ReinsuranceBroking #ReinsuranceSolutionsKenya

In summary, proportional or pro rata reinsurance takes two forms: quota share and surplus share.