Guy Carpenter global reinsurance composite reports 2009 Q1 net loss of US$127 million

The Guy Carpenter Global Reinsurance Composite showed a net loss of US$127 million in 2009 Q1, marking an 86% improvement over 2008 Q1.
The composite’s combined ratio decreased from 96% in 2008 Q1 to 93% in 2009 Q1.
Unrealized losses also improved quarter-over-quarter, from US$5.3 billion in 2008 Q1 to US$3.2 billion in 2009 Q1.
“This 39% change made it the most influential factor in the Global Reinsurance Composite’s overall result year-over-year,” a Guy Carpenter release says.
“Most of the change, however, came from a few large players, which means that, for the majority of the reinsurers covered, unrealized losses were flat from first quarter to first quarter.”
But realized losses increased 271%, to US$1.7 billion, between 2008 Q1 and 2009 Q1, the release continues, with European and Bermudan reinsurers sustaining the greatest impacts.
“The drastic change came from reinsurers’ existing positions that had become unprofitable in 2008, thus crystallizing unrealized losses,” the release says, adding that, “nonetheless… only two of 16 posted net losses after realized and unrealized gains and losses.”
Non-life underwriting results increased industry-wide, Guy Carpenter reports, with the Global Reinsurance Composite posting an aggregate gain of 60%, from US$700 million in 2008 Q1 to US$1.1 billion in 2009 Q1.