Converium Exec: Global Re Market 'Flattening out'

Converium Exec: Global Re Market 'Flattening out'

"A mature market results in prices of certain lines of business going up while others go down," commented Benjamin Gentsch, vice president of specialty lines at the Zug, Switzerland-based reinsurer. ?This is a very typical sign. We have seen a few lines where the rates have gone down substantially."

Converium reported earlier this week that its full-year 2003 net profit rose 73.3 percent to $185.1 million, compared to $106.8 million in 2002. For 2003, Converium said a strong rise in premiums written helped lift its profits.

The company's gross premiums written went up 19.5 percent to $4.22 billion in 2003 from $3.54 billion in 2002, while the company's non-life combined ratio improved from 103.7 to 97.9. Net premiums written for 2003 were $3.83 billion, compared to $3.32 billion in 2002.

Mr. Gentsch noted that his company has been seeing rate reductions in property-catastrophe, "and that applies pretty much globally."

The other line of business where Mr. Gentsch said he has seen notable price reductions is the marine market. "This is disappointing, because marine, even before, has not been a very generously rated market," he commented. "It is one of the disappointments globally that marine is pretty much underrated. Globally speaking, it's a heavily reinsured business."

But on the other hand, he noted that, generally speaking, he is still seeing a favorable environment, not only in pricing but also in terms and conditions. "So we are happy with the market right now. Fundamentals remain favorable for reinsurers," Mr. Gentsch said.