Impossible for industry to achieve 10% ROE in 2016
Thursday, 01 21 2016, Category: Insurance and Reinsurance, Country: World
Ongoing pressure in the insurance and reinsurance sector suggests that achieving a 10% or greater return on equity across the industry is likely “impossible” as both underwriting and investment returns remain depressed, according to Stephen Catlin.
Property/casualty insurers and reinsurers have benefitted from the benign catastrophe environment in recent years, helping them to post more acceptable profitability. But the persistence of a host of market pressures as 2016 gets underway, suggests a difficult year ahead for the majority of industry participants.