Realistic reinsurance RoE’s down to 3.4%
Thursday, 04 28 2016, Category: Insurance and Reinsurance, Country: World
Based on a more typical catastrophe loss year reinsurers aggregate RoE for the full-year 2015 would decline to 3.4%, says Willis Re. Suggesting reduced profitability that leaves little room for firms’ to outmanoeuvre the persistent headwinds challenging the reinsurance sector.
Companies within the Willis Reinsurance Index that provided catastrophe loss and reserve release information (subset) reported an aggregate RoE for the end of 2015 of 10.2% (11.5% FY 2014), while for the entire index the full-year 2015 aggregate RoE was 9.3% (11.3% FY 2014), says Willis Re.