Risk Exchange (DIFC) Limited’s Post

𝐋𝐥𝐨𝐲𝐝’𝐬 𝐚𝐧𝐝 𝐁𝐞𝐫𝐦𝐮𝐝𝐚 𝐅𝐨𝐫𝐠𝐞 𝐀𝐥𝐥𝐢𝐚𝐧𝐜𝐞 𝐭𝐨 𝐁𝐨𝐨𝐬𝐭 (𝐑𝐞)𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧 🤝 Lloyd’s and the Bermuda Monetary Authority (BMA) are teaming up to enhance collaboration in the (re)insurance sector. This initiative aims to leverage expertise from both hubs to foster innovation through programs like the Lloyd’s Lab and improve educational access. Supported by the Association of Bermuda Insurers & Reinsurers (ABIR) and the Lloyd’s Market Association (LMA), the partnership will launch a reinsurance cohort in H1 2025, focusing on tackling global challenges. Training opportunities and resources will be expanded, with Lloyd’s Academy programs and Bermuda-based courses being made available. Leaders from both sides express excitement for the partnership, emphasizing its potential to drive market progress and address evolving needs. #crire #reinsurance #insurance #insurancenews #newsupdates #insuranceupdates #llyods

Last week Lloyd's hosted their first Capital Markets Day of 2024 to share their market view, including some of the following highlights:    𝐅𝐢𝐯𝐞 𝐘𝐞𝐚𝐫𝐬 𝐨𝐟 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧:   Lloyd's has been making solid progress on its strategic priorities, modernising its digital framework and cutting operating costs. Alongside this, Lloyd’s has led the charge on critical issues like geopolitics, cyber risks, and pandemics. 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞:   2023 was a great year, with an 84% combined ratio and 11.6% premium growth. The balance sheet remains strong, with a £4.6bn reserve margin, resulting in AA ratings from S&P, Fitch, and Kroll. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐑𝐞𝐚𝐜𝐡:   Lloyd's is truly global, with over £52bn in gross written premium spread across 200 lines of business and key markets worldwide. Our extensive network includes 200 reinsurance licences and 77 direct licences. To summarise, John Neal, Lloyd’s CEO, said, “𝐼𝑛 2023 𝑤𝑒 𝑢𝑛𝑑𝑒𝑟𝑤𝑟𝑜𝑡𝑒 𝑟𝑖𝑠𝑘𝑠 𝑤ℎ𝑖𝑐ℎ 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑜𝑣𝑒𝑟 £50𝑏𝑛 𝑜𝑓 𝑝𝑟𝑒𝑚𝑖𝑢𝑚, 𝑎 𝑓𝑖𝑔𝑢𝑟𝑒 𝑡ℎ𝑎𝑡 𝑖𝑠 𝑟𝑖𝑠𝑖𝑛𝑔. 𝐺𝑙𝑜𝑏𝑎𝑙 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑟𝑒𝑚𝑖𝑢𝑚𝑠 𝑎𝑟𝑒 𝑔𝑟𝑜𝑤𝑖𝑛𝑔 𝑎𝑡 𝑎𝑟𝑜𝑢𝑛𝑑 𝑡𝑤𝑖𝑐𝑒 𝑡ℎ𝑒 𝑔𝑙𝑜𝑏𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝐺𝐷𝑃 𝑎𝑛𝑑 𝐿𝑙𝑜𝑦𝑑’𝑠 𝑔𝑟𝑜𝑤𝑡ℎ 𝑖𝑠 𝑒𝑣𝑒𝑛 𝑏𝑒𝑡𝑡𝑒𝑟 𝑡ℎ𝑎𝑛 𝑡ℎ𝑎𝑡.” We at Hampden believe the current rating environment and the growth opportunity at Lloyd’s provide the optimal time to realise higher returns. You can read the full report from Lloyd’s here - https://lnkd.in/erFb-dMj For more information on how to benefit from investing at Lloyd's or about Hampden Agencies Limited and the services we provide, please visit https://lnkd.in/eWnbMSQ9 #LloydsofLondon #HampdenAgenciesLimited #investment #CapitalMarketsDay #capitalmanagement #assetmanagement #highnetworth  #hnwi  #familyoffices  #lloydsoflondon  #londonmarket #familyoffice #insuranceindustry #insuranceagency #insuranceadvisor #insurance #insurancepodcast #reinsurance #insuranceindustry #insuranceagency #insuranceadvisor (Capital may be at risk)

🎥 Aon’s Marcell: Reinsurers enjoy equilibrium, but some cedants questioning value amid renewals pressure In an exclusive interview ahead of the Monte Carlo Rendez-Vous and to mark the launch of#ReinsuranceMonth, Aon’s Andy Marcell provides an insight into the evolving dynamics between reinsurers and cedants as the industry gears up for the critical 1.1.25 renewals. https://lnkd.in/gv4U45Pp Andy Marcell | Aon | Christopher Munro #TheInsurerTV #ReinsuranceMonth #rates #reinsurance #reinsuranceinterview #reinsurancemarket #reinsurancenews

Gallagher Re #Reinsurance Market Report: Results for Full-Year 2023. Following exceptionally strong profitability in 2023, reinsurers have now fully recouped for weaker profits in 2017-2020. Global #reinsurance dedicated capital totalled $729 billion at full year 2023, a rise of 12% versus the restated full year 2022 base. Growth was driven by both the INDEX companies and non-life alternative capital. Gallagher Re's in-depth analysis of a subset of 16 reinsurers shows the reported combined ratio improved to 88.9% (2022 FY: 94.6%). The underlying combined ratio also continued to improve, to 96% (2022 FY: 98.5%). James Vickers Michael van Wegen https://lnkd.in/epYt5KFd

🎥 Aon’s Marcell: Reinsurers enjoy equilibrium, but some cedants questioning value amid renewals pressure In an exclusive interview ahead of the Monte Carlo Rendez-Vous and to mark the launch of#ReinsuranceMonth, Aon’s Andy Marcell provides an insight into the evolving dynamics between reinsurers and cedants as the industry gears up for the critical 1.1.25 renewals. https://lnkd.in/gv4U45Pp Andy Marcell | Aon | Christopher Munro #TheInsurerTV #ReinsuranceMonth #renewals #rates #reinsurance #reinsuranceinterview #reinsurancemarket #reinsurancenews

Blake Evans-Pritchard was present at the Monte Carlo Rendez-Vous de Septembre this week. https://lnkd.in/gcfMfMXq His biggest takeaways from speaking and listening to industry practitioners ahead of the 1/1 renewals?: - Rates are likely to remain relatively flat, with downward pressure on them in certain areas. - But there are likely to be some complexities in negotiations, such as what a fair price of risk is and where attachment points should sit. - Reinsurers insist they need to focus on long-term stability rather than too much risk-taking, which caused problems in the past. - Reinsurers remain cautious about where their newly-won capital should be deployed. - However, as long as the price and conditions are right, reinsurers stand ready to unlock new capacity – and that could benefit Asia. Read Evans-Pritchard's reflections on this year's edition of RVS, which includes perspectives from MAPFRE RE's Javier San Basilio, Guy Carpenter's Tony Gallagher, and Munich Re's Scott Hawkins: https://lnkd.in/gcfMfMXq #Insurance #Reinsurance #RVS2024

🚀 Report from the 273rd AGM of The Society of Lloyd's! 🚀 A couple of months back, I had the opportunity to ask a pressing question about the future of capital from private investors in the insurance market. I was thrilled with the detailed response from Burkhard Keese, CFO. Here's a summary: 👉 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐟𝐫𝐨𝐦 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: Lloyd’s aims to increase capital from Names to 20%, but currently, it stands at around 6%. 👉 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: The past year's successes are not enough to attract new capital; regulations and political barriers also pose significant hurdles. 👉 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐯𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬: Introduction of a modified freehold agreement, aiming to balance the interests of managing agents and investors [I believe this point was a discrete nod to the Hampden Agencies Limited / Fidelis Insurance Group Syndicate 3123 transaction]. Big thanks to Burkhard for shedding light on these crucial issues and for the continued efforts to make Lloyd's a more competitive market for private investors. Let's continue working together to drive innovation and growth in the market! 💼💡 #LloydsAGM #InsuranceMarket #PrivateCapital #Innovation #Growth

What Drives the Growth of the #LifeReinsurance Market? The increasing emphasis on insurers to mitigate losses by managing risks is propelling the growth of the life reinsurance market. Reinsurance serves as a safeguard against insolvency, enabling insurers to honor claims and fortify their financial stability. This confidence allows insurers to expand their offerings and cater to a broader clientele. Key Market Players: Liberty Mutual Reinsurance, Swiss Re, Berkshire Hathaway, Munich Re, AXA XL, Everest Group., Hannover Re, RGA Reinsurance Company, The Standard Life Assurance Company of Canada, Sompo International Want To Know More: https://lnkd.in/dVAP28Kf #AMR #LifeReinsurance #RiskManagement #InsuranceIndustry #FinancialStability #InsolvencyProtection #RiskMitigation #InsuranceServices #FinancialSecurity #ClaimsManagement #IndustryGrowth

🌐 Big news in the reinsurance world! AM Best has shifted the global reinsurance segment from a stable to a positive outlook. 📈 Despite a slowdown in rate increases, reinsurers are boasting "robust profit margins" that have propelled this optimistic shift. After a spree of "drastic repricing," enhanced attachment points, and tightened terms, the reinsurance industry's profits are soaring. 🚀 The key here isn't soaring rates but steadfast discipline. Underwriting remains rigorous, with profit margins that can withstand greater losses than we've recently seen. Demand for coverage keeps climbing amid the rise in natural disasters and prevailing economic uncertainties. 💡 The report is in—2023 marked the third consecutive year of positive underwriting results, with some players seeing combined ratios below 90.0 and ROEs smashing the 20% ceiling. 🏆 While 2022 had its bumps with investment losses, higher reinvestment rates have smoothed the path for a promising 2024. Let's not forget, no market thrives without a degree of challenge. Losses like the Francis Scott Key Bridge collapse have dented Q1 2024 loss ratios but failed to undermine stellar ROEs and underwriting margins. 👏 What about new market entrants, you ask? Surprisingly, none have significantly disrupted the game, allowing seasoned players to sustain discipline and recover from prior year losses—a testament to the resilience and robustness of the reinsurance market. 🔍 This is not just a blip but a trend supported by a slower reduction in interest rates, hinting at strong short-term returns. While the exceptional ROEs of 2023 may be tough to repeat, reinsurers are all set to double down on their underwriting discipline. 💼 No time to rest on laurels, though—the future beckons with the necessity for balance. Reinsurers must price risks adequetly while staying relevant amidst geopolitical, climate, and technological upheavals. The stage is set for an industry that's both resilient and forward-looking. 🌟 #Reinsurance #RiskManagement #FinancialOutlook #insurance #insuranceindustry

Key chart for me from the Gallagher Re 2023 #reinsurance report, out today. It is harder to measure demand for reinsurance than available capital. The darker line shows premiums ceded to reinsurers divided by reinsurers' capital; the lighter line modelling agency Verisk's average annual cat loss estimate ($133bn as of 2023, up from $123bn a year earlier) over reinsurers' capital (ie cat losses in an 'average' year were c.18% of reinsurance capital in 2023, down from c.19% in 2022). Neither is a perfect measure, but both suggest that capital increased by more than demand last year, which would be consistent with flattish April renewals reported last week - link to April report below. Gallagher Re concludes that the industry could absorb nearly double the average level of cat losses and still produce an above-WACC return.  Social inflation, Specialty losses and interest rates provide plenty of other variables, in my view, while actual nat cats will always be the real wild card. https://lnkd.in/ePbfAu_N https://lnkd.in/ed_zuSqe