Reinsurers have not had it easy in recent years. For two years in a row, natural catastrophes challenged reinsurers with losses totaling more than $200 billion in 2017 and 2018, combined. Yet, despite those challenges, things are looking up slightly for the segment.
According to AM Best's Market Segment Report, "Global Reinsurance: Fighting the Last War," non-life reinsurance pricing is gaining more favorable momentum, even in an increasingly competitive market environment. In fact, a more stable non-life pricing environment; continued alignment of traditional and third-party capital; better alignment of risk and return; and other positive factors prompted AM Best to upgrade its outlook for the global reinsurance segment from "negative" to "stable" in December 2018.
A stable marketplace has benefited reinsurers' business — the year-over-year premium growth among AM Best's annual Top 50 World's largest Reinsurance Groups increased from $262.7 billion in 2017 to $263.0 billion in 2018. While the gain is minimal, it's important to note that a portion of 2017's market growth was contributed from reinstatement premiums resulting from the Harvey, Irma, and Maria hurricane losses, and a transaction between Berkshire Hathaway and AIG
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
