Bermuda Reinsurer Profits Affected by Excess Capital
Thursday, 09 01 2016, Category: Insurance and Reinsurance, Country: World
Bermuda-based (re)insurers have a long history of profitability, but economic pressures and an overabundance of capital from traditional and alternative sources has challenged profitability for the group, according to a new report from Fitch Ratings. A review of 2015 audited GAAP financial statements of 19 Class 4 Bermuda-domiciled (re)insurers (the group) reveals favorable but tempered operating results. Underwriting gains for the group were $4.4 billion in 2015 with a combined ratio of 86% and a 10% net income return on common equity (ROE), with all measures deteriorating moderately from the prior year.