Outsized profits managed by Bermuda-based primary insurers and reinsurers in the last decade will inevitably drop this year in light of falling rates in the marketplace, a major reinsurance brokerage has concluded.
The findings are contained in the Guy Carpenter & Company LLC Managing Prosperity: 2008 Bermuda Update Report, which said the 18.4 percent return on equity and 14.2 percent increase in capital last year, by the 25 companies studied, is a "high hurdle" for the coming year.
After a ten-year record of outperforming the Standard & Poor's 500 in generating shareholder value--driven by low tax rates, experienced executives and a friendly regulatory regime--the Bermuda market faces significant challenges to prosperity in 2008, the report concluded.
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