Alternative reinsurance capital to grow influence in Europe
Thursday, 03 31 2016, Category: Insurance and Reinsurance, Country: Europe
Analysts at Berenberg have discussed the growing presence of alternative reinsurance capital in European markets, noting a rise in non-insurance entities transferring risk via the capital markets. A trend that could pose a threat to some reinsurers, says Berenberg.
With the exception of Eastern Europe the rest of the region continues to experience the softening of reinsurance rates, exacerbated by the growing influence of alternative capital across Europe, notes Berenberg.
“The alternative market is increasing its presence in the region and previous top layer “rules-of-thumb” are reported to have been broken at 1/1,” said Berenberg, adding that while the inflow of third-party investor-backed capacity continues to grow, some rate stabilisation has been evident in recent issuances.