Analysis

P&C stocks have performed relatively well in the year to date as investors have been gripped by the M&A fever that has spread throughout the sector.

Probable maximum losses (PMLs) for US wind risk generally subsided ahead of the peak North Atlantic hurricane season, as (re)insurers tweaked their cat exposure in the face of a prevailing soft market environment.

After a pause, the pool of London-listed specialty carriers has resumed shrinking this year with another three (re)insurers succumbing to the advances of foreign buyers.

The wave of M&A activity that has rolled through the P&C sector looks set to maintain its momentum as the causes of consolidation remain.

With the curtain drawn on another Monte Carlo Rendez-Vous, the sector's P&C equities analysts have issued their key takeaways from the conference.

Absolute return funds have become popular in recent years as investors seek to obtain the best risk-adjusted return for their money. But the returns this year have looked much flatter than in previous years, highlighting the need to ensure your asset manager is the best fit for your investment philosophy

With Solvency II finally going live on 1 January 2016, Morgan Stanley Investment Management believes cash will soon be in the spotlight, as treasurers turn their focus to the implications of money market fund holdings as well as the capital cost of the main alternative, cash at bank.

Reinsurers remained focused on capital management in the second quarter as deployment opportunities became further constrained and M&A activity continued

Net returns narrowed materially during the second quarter as thinning underwriting margins, low investment returns and mark-to-market losses crunched the bottom line

Listed (re)insurers delivered varied underwriting results for the second quarter as some carriers were bludgeoned by above-average large risk and attritional claims while others benefited from another light cat quarter

The second quarter served as a stark reminder to global specialty (re)insurers that volatility exists beyond the realms of major natural catastrophes

P&C (re)insurance stocks were stung by the events of Black Monday last week, with volatility triggered by China growth fears causing The Insider 30 to tumble by 0.94 percent despite some recovery later in the week.