Berkshire Hathaway now fourth place in reinsurance market: A.M. Best

Berkshire Hathaway Inc. has jumped ahead of SCOR SE in the reinsurance market, replacing the Lloyd’s market as the fourth-largest reinsurance group in 2014, A.M. Best Company Inc. suggests in a report released Wednesday.

In its annual Global Reinsurance Segment Review, released towards the end of the summer, A.M. Best lists the top 50 global reinsurance groups, ranked by premiums written in the previous year.

The Oldwick, N.J.-based ratings firm noted that from 2013 to 2014, “the majority of the movement occurred within the first and third tier companies as the top 10 did experience some shifts, mainly due to the strengthening” of the United States dollar “toward the end of 2014.”

The top three reinsurance groups, in order, are Munich Reinsurance Company, Swiss Re Ltd. and Hannover Rueckversicherung AG, in 2014, A.M. Best noted in its segment review released Wednesday. Those are unchanged from 2013.

Omaha, Nebraska-based Berkshire Hathaway, which placed sixth in 2013, ranked fourth in 2014. The Lloyd’s market dropped from fourth to sixth place.

Berkshire Hathaway owns both Berkshire Hathaway Reinsurance Group and General Re, while its primary insurance operations include GEICO and Berkshire Hathaway Specialty Insurance (BHSI).

Berkshire Hathaway’s total reinsurance gross written premiums – including life – increased from $12.776 billion in 2013 to $14.919 billion in 2014, A.M. Best noted. Its total non-life gross written premiums dropped from $7.339 billion in 2013 to $9.889 billion in 2014.

In the Lloyd’s market, reinsurance premiums dropped from $15.614 billion in 2015 to $13.199 billion last year.

French insurer SCOR S.E. remained in fifth place, though its premiums in original currency increased 10.4%.

A reinsurer owned by Toronto-based Fairfax Financial Holdings that dropped two places. Stamford, Conn.-based OdysseyRe Holdings Corp. had gross written premiums, in reinsurance, of $1.756 billion in 2014, down from $1.868 billion in 2013.

Odyssey Re was 22nd in 2013 (ahead of Catlin Group Ltd.), dropping to 24th in 2014. Its premiums, in original currency, dropped 6%, A.M. Best reported.

Catlin – now owned by XL Group plc – jumped four places to 19th in 2014. Its premiums in original currency increased 12.2%, from 2013 to 2014, A.M. Best noted.

Everest Re Group Ltd., of Hamilton, Bermuda, went from 11th to 10th place, with gross written premiums of $5.219 in 2013 and $5.749 billion last year. Everest Re’s premiums, in original currency, increased 10.2%, A.M. Best noted.

R+V Versicherung of Wiesbaden, Germany was in 17th place in 2014, up from 21st in 2013. Its premiums rose 14.8%. Zurich-based ACE Ltd. remained in 36th place, but its premiums, in original currency, dropped 6% from 2013 to 2014, A.M. Best added.

Other “noticeable” changes, in premiums in original currency, from 2013 to 2014, were:

• W.R. Berkley Corp. (down 14.0%);
• NKSJ Holdings (up 13.4%);
• ACR Capital (down 12.2%);
• American Ag (down 11.4%);
• Amlin (up 10.1%);
• Tokio Marine (up 9.9%); and
• Validus Re (down 8.5%).