Capacity refill would take time after major loss event
Saturday, 11 12 2016, Category: Insurance and Reinsurance, Country: World
Chief Executive Officer (CEO) of Validus, Ed Noonan, has warned that it could take time for the reinsurance industry to recapitalise after a major industry loss event, the type of which could seriously disrupt the retrocession marketplace.
During the Validus third-quarter 2016 earnings call, Noonan discussed the impacts of hurricane Matthew with an exploration of what it might have meant for the industry should the storm have tracked 30 miles to the West, instead of its chosen path along the U.S. coastline, eventually making landfall in South Carolina.
So far, insurance and reinsurance industry losses from the damages caused by Matthew vary, with reports that the total industry impact is expected to be between $4 billion and $6 billion from some firms, with others suggesting the loss could be greater, even as high as $8.8 billion.