Asian reinsurers remain profitable in 2017
Wednesday, 08 08 2018, Category: Insurance and Reinsurance, Country: Asia
Asian reinsurers in catastrophe-prone countries remained profitable over 2017 despite continued market softening thanks to effective risk management, favourable loss-reserve development, and limited catastrophe events, according to a new report by Fitch Ratings.
Fitch found that big reinsurers in China, Japan and Korea recorded favourable profitability with return on equity (ROE) of 5-9%, although Indonesian reinsurers fared better with average ROE of 23% due to strong underwriting performance and steady investment returns.
Over the past five years, the average combined ratio for Indonesian reinsurers remained around 88%, reflecting prudent underwriting, while investment yield was steady at an average of 7% over 2013-2017.