Reinsurers take the heat off insurers
Reinsurers are taking on more risk as insurers face up to the worst financial crisis in recent history.
The Reinsurance Association of America (RAA) surveyed 19 US general reinsurers in its quarterly underwriting report and found they wrote $US23.9 billion ($35.5 billion) in premiums last year, up $US1.2 billion ($1.78 billion) from the previous year.
The combined ratio for the group was 101.8%, deteriorating from the 94.7% reported in 2007. The RAA says this is mainly due to an average 71% loss ratio and an expense ratio of 31%.
The survey shows that while some reinsurers recorded underwriting gains, most had significant losses, with Munich Re America’s $US364 million ($540 million) loss the largest recorded. Others to sustain significant losses included QBE Reinsurance, Swiss Re America and White Mountains Reinsurance.
The Reinsurance Association of America (RAA) surveyed 19 US general reinsurers in its quarterly underwriting report and found they wrote $US23.9 billion ($35.5 billion) in premiums last year, up $US1.2 billion ($1.78 billion) from the previous year.
The combined ratio for the group was 101.8%, deteriorating from the 94.7% reported in 2007. The RAA says this is mainly due to an average 71% loss ratio and an expense ratio of 31%.
The survey shows that while some reinsurers recorded underwriting gains, most had significant losses, with Munich Re America’s $US364 million ($540 million) loss the largest recorded. Others to sustain significant losses included QBE Reinsurance, Swiss Re America and White Mountains Reinsurance.