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European insurers' investment portfolios will become more diversified in the coming months, as low returns and non-investment profits come under pressure, according to AM Best.
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Capital management remained firmly on the agenda for Bermudian and short-tail carriers during the second quarter as market headwinds continued to erode profitable growth opportunities.
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Aviation insurers received no respite during the mid-year renewals as aviation rates saw double-digit declines at the sector's most significant renewal period of the year so far
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Reinsurers that have historically implemented more prudent reserving strategies will have a long-term competitive advantage over those that have been more aggressive in releasing reserves, Standard & Poor's (S&P) has warned.
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Operating returns for Bermudian (re)insurers flattened during the second quarter, as a number of non-cat and smaller cat losses hit the bottom line.
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Bermudian carriers booked varied top-line movements during the second quarter, although it was clear that (re)insurance market pressures were felt across the board.
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Short-tail carriers reported contrasting top line movements in Q2 as Validus and RenaissanceRe benefited from recent diversifying acquisitions while Lancashire booked significantly lower gross written premium (GWP), in part because several multi-year contracts were not up for renewal.
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Returns for the short-tail (re)insurers slid well below their five-year average in the second quarter as a sharp drop in underwriting profits was only partially offset by an improvement in investment results.
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Underwriting results sharply deteriorated in the second quarter for The Insurance Insider's shrinking composite of short-tail specialists as compounding rate reductions combined with an above-average period for losses.
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Share price data on The Insurance Insider's universe of P&C (re)insurers