Reinsurance reserve releases to slow
Tuesday, 03 22 2016, Category: Insurance and Reinsurance, Country: World
Reinsurance reserve releases have been slowing over recent quarters for many in the sector, with the fourth-quarter of 2015 seeing more reinsurers reporting smaller releases, rather than larger, a trend that analysts at Keefe, Bruyette & Woods expect will continue.
Reserve releases have been providing a much-needed boost to reinsurer returns during the softening of the market over the last few years. With catastrophe losses minimal and each year having been benign, in terms of major industry losses, since 2012, the expectation has always been that releases would slow down.
Now KBW believe that fourth-quarter 2015 results may have reflected this, as releases have slowed at more reinsurers than they have grown at.