Reinsurers creep closer to breakeven
Wednesday, 03 23 2016, Category: Insurance and Reinsurance, Country: World
Reinsurance firms are operating very close to breakeven, on a normalised basis, reflecting the “wider deterioration in market conditions, driven by lower reinsurance prices feeding through to results,” according to Fitch Ratings.
In a new report Fitch looks at the recent results of some of the world’s largest reinsurers and concludes that they do not reflect the market environment, but on a normalised basis they show that the large reinsurance firms are coming closer to breakeven, showing that future underwriting profitability and reinsurance pricing are likely to face increased sensitivity.
On a normalised combined ratio basis the 2015 underwriting results for the four major European reinsurers show these firms very close to breakeven with an average normalised combined ratio now at 98.5%, just below breakeven, versus the average reported by the reinsurers of just 90.3%.