Rates adequate, returns near cost-of-capital in Lloyd’s renewals
Wednesday, 01 06 2016, Category: Insurance and Reinsurance, Country: World
Insurance and reinsurance rates in the Lloyd’s of London market declined in line with comments from brokers at the January 1st 2016 renewals and while they remain technically adequate, the returns on underwriting are nearing cost-of-capital, according to analysts at Peel Hunt.
Following a visit to the Lloyd’s market after the January 2016 renewals, analysts from Peel Hunt provided some insight into the renewal, market sentiment among underwriters at Lloyd’s and some thoughts on how market dynamics will develop through 2016.
Further rate pressure was evident across the majority of reinsurance and specialty insurance classes underwritten in the Lloyd’s market, the analysts explained, with pockets of positive growth evident where innovation has helped to generate new business and develop new products.