Reinsurers should tap alternative capital
Tuesday, 09 19 2017, Category: Insurance and Reinsurance, Country: World
Following the impacts and losses from hurricanes Harvey and Irma some reinsurance firms may find their earnings depleted and shares trading below book-value, but rather than looking to equity raising to help them through, reinsurers should tap into alternative capital, according to analysts at Morgan Stanley.
The analysts make a valid point. This is the time in the reinsurance market cycle when reinsurers can take advantage of alternative capital more, positioning themselves as a conduit to risk for the many institutional investors looking to enter the market at a time of dislocation.