“Cracks” beginning to appear in reinsurance market
Friday, 05 12 2017, Category: Insurance and Reinsurance, Country: World
Persistent rate reductions, a continued oversupply of capacity and minimal loss activity isn’t expected to materially change the outlook of the re/insurance market, but cracks are starting to appear in the space, according to the Chief Executive Officer (CEO) of Lancashire Holdings, Alex Maloney.
Specialist Bermuda and London insurance and reinsurance underwriter, Lancashire Holdings, recently held its first-quarter 2017 earnings call, where the firm’s CEO discussed broader insurance and reinsurance market trends in the current, challenging operating landscape.
Despite rate reductions in the reinsurance market slowing at recent renewals, the ongoing decline is adding further pressure to the underwriting profits of firms, while low interest rates continue to offset any substantial gains on the investment side of companies’ balance sheets.