Press Release - SEPTEMBER 10, 2019

AM BestTV at Rendez-Vous: ‘The Future Looks Bright,’ Say (Re)Insurance Industry Executives


CONTACTS:
 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 10, 2019
In this AMBestTV episode from the 2019 Les Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, attendees say the reinsurance market has stabilized after a difficult period marked by declining profitability, lower return-on-equity (ROE) and significant natural catastrophes. Click on http://www.ambest.com/v.asp?v=rvswrap2919 to view the entire program.

Rates are rising and traditional reinsurers are protecting their balance sheets with alternative capital while earning fee income.

“After several years of declining profitability, lower and lower ROEs, coupled with 2017 and 2018 having significant events that hurt the earnings of the sector, today there is real stabilization in the reinsurance market,” said Stefan Holzberger, chief ratings officer, AM Best. “Rates are improving. The traditional market is utilizing alternative capital and capacity to protect its balance sheet and earn fee income through shedding risk off to sidecars, so to allow for a real alignment of interests. AM Best believes that at the January 2020 renewals, there will be a better rate environment that allows for more appropriate ROEs.”

Jerome Haegeli, group chief economist, managing director, Swiss Re, said the outlook for the industry is promising.

“Look at insurance market premiums overall. Last year was a record high in terms of insurance premiums earned for the primary industry. On the pricing front, especially on commercial prices, there is also some rate hardening, which I think shows that there are very positive drivers in our industry,” he said.

Other people that appear in this episode:


  • Chris Beazley, chief executive officer, MS Amlin, AG;

  • David Flandro, managing director, analytics, Hyperion X;

  • Carsten Prussog, chief executive, Munich Re; and

  • Waleed Jabsheh, executive director, United Kingdom, IGI.

To access a copy of AM Best’s recent Best’s Market Segment Report on the global reinsurance industry, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277679 .

For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit http://www.ambest.tv/rvs19 .

Recent AMBestTV episodes include:


  • ‘What a Difference a Year Makes,’ Say Analysts at AM Best’s Rendez-Vous Reinsurance Briefing: At the 2019 Les Rendez-Vous de Septembre conference, AM Best analysts said that following the “doom and gloom” of the previous couple years, reinsurance pricing has improved and opportunities in the cyber market abound: http://www.ambest.com/v.asp?v=rvswrap1919 .

  • Evolving Reinsurance Environment Calls for New Strategies, Say AM Best Analysts: DeRose and Scott Mangan, AM Best associate director, discuss the sustainability of the reinsurance industry’s newfound underwriting discipline: http://www.ambest.com/v.asp?v=globalrereport819 .

  • Swiss Re Retakes Top Spot in AM Best’s Annual Global Reinsurance Ranking: Filippo Novella, financial analyst, AM Best, said Swiss Re moved past Munich Re in the ranking, and detailed other developments, such as appearances in the top 50 for Argo Group and Qianhai Re, a recently formed Chinese reinsurer: http://www.ambest.com/v.asp?v=globalrelist819 .

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.