Filed Under:Markets, Commercial Lines

Even $50B Hurricane Might Not Turn Re Market

Surprise element needed in addition to capital-draining event, says Guy Carpenter exec

With a soft reinsurance market continuing again in 2011, a frequently asked question is just what type of catastrophic, capital-draining event could occur to turn the market.

“At this point, we think that even a $50 billion hurricane loss event would only give the market pause for a year or so,” said David Flandro, head of Global Business Intelligence for Guy Carpenter & Company in London.

Separately, last week, Towers Watson, a New York-based reinsurance broker, put the current level of reinsurer capital over $300 billion.

Bill Eyre, managing director, said reinsurers’ surplus for the top 40 global players was roughly $315 billion at year-end 2010, representing “a new high-water marker for reinsurers’ capital levels.”

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