Data on the Aon Benfield Aggregate (ABA), the broker's group
of 28 leading global reinsurers, showed that the reinsurance sector
has been heavily reliant on capital gains and reserve releases to
support returns over the last two years.
While the sustainability of large reserve releases has faced much
scrutiny, less attention has been paid to the impact of falling
capital gains as the "rebound" effect from the financial
crisis begins to slow.
In 2010 the ABA reported an additional $8.4bn...
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