Munich Re reflects reinsurance pressure
Friday, 02 05 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurance player Munich Re has reported lower returns on capital and on equity for 2015, although profit remained stable, perhaps giving a glimpse into a new normal for the large reinsurers as returns are squeezed by price pressures and competition.
Often the ability to meet or generate a profit is all that reporters and shareholders care about, but looking beyond the ability to generate financial gain, above tax and expenses, can give us a better picture of the state of an industry, especially one as in-flux as reinsurance.
For Munich Re 2015 has resulted in a healthy profit, albeit roughly flat with the 2014 figure.