Reserve release potential drying up for reinsurers
Wednesday, 05 10 2017, Category: Insurance and Reinsurance, Country: World
Prior-year reserve releases, which have been supporting reinsurers’ profitability in the current soft market, are drying up at some reinsurers, which may help to increase rates, Munich Re chief financial officer Jörg Schneider suggested.
Because of an absence of large losses in property/casualty (P&C) in recent years, reinsurers have been able to release reserves from prior years, boosting underwriting profitability. Rates in the P&C market have come under considerable pressure as the sector attracted investors looking for yield in a historically low interest rate environment.
Source: Intelligent Insurer