ACE’s Global Reinsurance Faces Stiff Competition
Monday, 12 28 2015, Category: Insurance and Reinsurance, Country: World
ACE’s (ACE) Global Reinsurance segment is facing stiff competition from existing and new players around the world. The reinsurance business is competitive on the pricing and offering front. The company reported a fall in the net premiums written in the reinsurance business of 11.5% or 9.5% on a constant dollar basis. The division’s net investment income fell by 6.2% to $76 million. Investment income is expected to see some revival due to a rate hike in the upcoming quarters.
The reinsurance division benefited from lower claims in 2015. This resulted in higher net income despite falling revenue. In fiscal 3Q15, the division’s net income rose by 8.1% to $174 million in fiscal 3Q15 due to lower claims compared to fiscal 3Q14. The division’s combined ratio was 41.2% in fiscal 3Q15—compared to 70.2% in the same quarter last year.
Source: Finance Yahoo