All too often the insurance industry is the whipping boy for headline-grabbing politicians after a catastrophe, and this was evident in the aftermath of the London Bridge attacks last year.
Ten years ago, $1bn was the default minimum size for a global reinsurer/specialty carrier to be taken seriously.
That was fun wasn’t it? After several years of low volatility, soaring asset valuations and governments being paid to take on debt, global investors were reminded yesterday and today that the value of their investments can go down as well as up.
Lloyd’s has a problem. Its expense ratio is now - at 40.6 percent - much higher than its competitors. This could be ignored when underwriting profits are made but on the 21 March we will find out the size of the 2017 market loss.
18 months ago AIG sold the well regarded Lloyd’s carrier Ascot for approximately 1.6 times book. Today it’s buying Validus and its Lloyd’s platform Talbot for around the same multiple. Why the strategic U-turn?
After a loss-plagued autumn which has raised hopes of finally bringing much-needed change (from a carrier perspective) to the (re)insurance market dynamics, all eyes now turn to the Q4 and full-year 2017 results season which begins in earnest today with US insurance heavyweight Travelers (see table).
How do you replace an emblematic leader while maintaining the essence of that which they formerly led?
Divides have begun to emerge on rate movements across the market as brokers took it in turns last week to publish their take on 1 January renewals.
After months of bluster about the potential for double-digit rate hikes, reinsurers conceded ground at the eleventh hour to walk away from the 1 January renewals disappointed. At least, this was the sub-theme from some of the international brokers last week but does this tell the whole story?