European cedants slow down purchase of reinsurance
Monday, 03 20 2017, Category: Insurance and Reinsurance, Country: Europe
Despite a soft market, large European cedants have slowed down the pace at which they are buying reinsurance, according to AM Best.
Higher sessions have been driven by a diverse range of factors, including regulatory demands under Solvency II and the need to support product diversification – including new lines of business, a report titled “European Cedants Continue to Increase Reinsurance Buying but Demand for Cover Slows,” noted.
In 2015, total non-life premiums ceded for the 20 largest European cedants rose by 17.9 percent to €44.2 billion while gross premiums written (GPW) increased during this period by just 6.2 percent to €333.3 billion. For the 15 companies in which data were available, demand for reinsurance continued in the first half of 2016 but was less pronounced. Premiums ceded increased by 3.0 percent to €21.9 billion, while GPW decreased by 1.3 percent to €154.1 billion.
Source: Intelligent Insurer