Bermudian third quarter gross written premiums (GWP) increased by 20.4 percent on the prior-year period to reach $7.8bn, fuelled by reinstatement premiums triggered by the quarter's elevated level of catastrophe losses.
P&C (re)insurers reported yet another quarter of deteriorating underlying margins, as third quarter accident-year ex-cat loss ratios rose by 1.3 percentage points year-on-year on a simple average basis at the companies under our coverage that have reported so far.
With the recent hurricane season producing one of the costliest third quarters in history, underwriting profits have, unsurprisingly, been absent from Q3 earnings disclosures.
Third quarter results revealed widespread shrinking in reserve releases, with the majority of carriers that have reported so far posting a decline in favourable prior-year development relative to their respective premium bases.
As growing loss ratios continued to pressure underwriting margins, third quarter results so far have revealed that (re)insurers turned to expense management to improve their results, while reduced variable compensation also came to the rescue.
P&C (re)insurers in our coverage group that have reported third quarter results so far have revealed strong top-line increases, with around half of their gross written premiums (GWP) growth rates well up into double-digit territory.
