It was no surprise: the top 10 reinsurers in Australia are all foreign-owned. The latest rankings by Deloitte Touche Tohmatsu show the leading 10 account for 93% of the reinsurance market. They also all made an underwriting loss.

Munich Re is the biggest, with overall growth of 62% and gross premium revenue of $509 million. Its combined operating ratio was 108%. Swiss Re follows with gross premium revenue of $417 million and a COR of 119%.

Hannover Re sits in third place with gross premium revenue of $256 million, growth of 24% and a COR of 118%.

The remaining seven are General Cologne Re, Gerling Global Re, American Re, Employers Re, Scor Re, Converium and XL Re.

Peter Caldwell, Deloitte Touche Tohmatsu’s National Insurance Industry Group Director, said the only possible Australian contender is QBE Re, which stopped writing treaty business in Australia in January – although it still writes facultative business through its QBE operations.

The other Australian reinsurer, IAG Re, is a captive reinsurer which limits its activities to the reinsurance needs of the IAG Group. But Mr Caldwell said Australia is fortunate to have reinsurers which are “generally conservative and well capitalised”.

“They spread Australian risks around the world and invariably make payouts for catastrophe claims – bushfires, hailstorms, earthquakes and cyclones – usually far in excess of the net amounts absorbed by direct underwriters”.