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Capital returning to reinsurance market: Guy Carpenter


August 28, 2009   by Canadian Underwriter


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Gains in underwriting and a return of calm to the global financial markets have helped some reinsurers regain half or more of the capital they lost as a result of the 2008 financial crisis and windstorms, according to Guy Carpenter.
According to 1H2009 Reinsurer Financial Update: Capital Returns, the Guy Carpenter Global Reinsurance Composite posted an aggregate increase of US$4.6 billion for the first half of 2009, contrasting sharply with an aggregate loss of US$3.5 billion for the first half of 2008.
Unrealized investment losses for the first half of 2009 declined by 87% year-over-year, from US$11.7 billion to US$1.5 billion, a Guy Carpenter release says.
Realized investment losses also dropped by 43% to US$1.2 billion.
Underwriting earnings rose 9.6% for Global Reinsurance Composite companies relative to the first half of 2008, reaching US$2.2 billion for the group as a whole, it continues.
Combined ratios declined from 85.6% to 84.9%, year-over-year, the release adds.