Reinsurance expenses up, returns down, but profits continue
Friday, 04 08 2016, Category: Insurance and Reinsurance, Country: World
The underwriting performance of global Aon Benfield Aggregate (ABA) listed reinsurance companies in 2015 deteriorated by almost half a percent, to 90.2%. Driven by an increased expense ratio that was partly offset by a continued lack of major losses and favourable prior year reserves, potentially masking true profitability.
During 2015 “The expense ratio rose by a full 1pp to 32.4%, driven largely by franchise investment, higher ceding commissions and business mix changes,” explains reinsurance broker Aon Benfield in its latest ABA report, highlighting that over the last ten years the expense ratio of ABA listed firms has increased by 4.9%.