(Re)in Asia’s Post

Reinsurers are in a strong position, but insurers are bearing higher losses and some are struggling. Balance is key, says David Priebe, chairman of Guy Carpenter, emphasizing the need for reinsurers to support clients through challenges. A “significant market correction in structure, pricing, and coverage” over the past 12–18 months has strengthened reinsurers' results, he noted. Read the full story here: https://ow.ly/qOZ350U1Yrt #SIRC2024

🇲🇨 Welcome to Day Four Monte Carlo edition: Wednesday, 11 September ✅ Download for FREE: https://lnkd.in/g_crMwcc In a few hours time, Monte Carlo’s Casino Square will once again be the sole habitat of fast cars and slow tourists as the global reinsurance tour moves on for another year. As a consequence, this is also our final special reinsurance Rendez-Vous daily edition so it’s fitting we round up the main themes. The natural starting point, inevitably, is the direction of travel on pricing. Putting aside the traditional shadow-boxing that occurs in public between brokers and reinsurance, privately there was a recognition that 2025 may see the first downward pressure on property cat treaty pricing for a number of years. However, reinsurers caveat that with confidence it will be moderate ("typically flat to down low/mid single digits") and contained with geographical variations. Our “Postcard from Monte Carlo” below goes into greater detail. Crucially, reinsurers say they are committed to staying away from frequency losses. This is likely to be one of the negotiating battlegrounds and perhaps the industry’s cat loss experience in Q4 will have some bearing on carriers’ steadfastness in this regard. In contrast, US casualty is clearly causing consternation and the major markets appear united in their caution. As a consequence, we would anticipate pressures in the other direction especially with problematic accounts or classes. Overall, thou, the Monte Carlo picture is one of relative stability ahead of the 2025 renewals. Other macro themes include an uptick in corporate activity, including M&A, start-ups, IPOs and capital raising. We also explore this in more detail below. What else? Well, the expected return of Willis Re (in a joint venture with private equity house Bain) naturally generated excitement and with it the inevitable speculation on who might take on the tough but no doubt highly rewarded leadership role if successful. But for now we bid au revoir to another Rendez-Vous and we look forward to tracking all the developments that occur in the run-up to another 1.1… For more exclusive content, visit: https://lnkd.in/gqA6n25q #ReinsuranceMonth #RVS2024 #reinsurance #reinsurancemarket #reinsurancenews

As reinsurers enjoy a golden period, reaping the rewards of the radical readjustments that have occurred at recent renewals, Aon reinsurers lean into these challenges and collaborate to create a more sustainable and relevant marketplace. Speaking at the renewal season briefing ahead of The Rendez-Vous de Septembre, Mike Van Slooten shared with InsuranceAsia News that reinsurers should help clients navigate the increasing complexity of today’s risks. Rupert Moore warns that if reinsurers shy away from risk, insurers will follow, leading to a shrinking and less relevant industry. Follow our coverage of the trends and themes at the Monte Carlo reinsurance summit: https://lnkd.in/gbnu_xcX   If you are not a subscriber, take our free trial to read the full article: https://lnkd.in/g23jCVrn #RVS2024 #MonteCarlo #rvs #rendezvous #reinsurance #insurance

🎥 Aon’s Marcell: Reinsurers enjoy equilibrium, but some cedants questioning value amid renewals pressure In an exclusive interview ahead of the Monte Carlo Rendez-Vous and to mark the launch of#ReinsuranceMonth, Aon’s Andy Marcell provides an insight into the evolving dynamics between reinsurers and cedants as the industry gears up for the critical 1.1.25 renewals. https://lnkd.in/gv4U45Pp Andy Marcell | Aon | Christopher Munro #TheInsurerTV #ReinsuranceMonth #rates #reinsurance #reinsuranceinterview #reinsurancemarket #reinsurancenews

🎥 Aon’s Marcell: Reinsurers enjoy equilibrium, but some cedants questioning value amid renewals pressure In an exclusive interview ahead of the Monte Carlo Rendez-Vous and to mark the launch of#ReinsuranceMonth, Aon’s Andy Marcell provides an insight into the evolving dynamics between reinsurers and cedants as the industry gears up for the critical 1.1.25 renewals. https://lnkd.in/gv4U45Pp Andy Marcell | Aon | Christopher Munro #TheInsurerTV #ReinsuranceMonth #renewals #rates #reinsurance #reinsuranceinterview #reinsurancemarket #reinsurancenews

If you've not already read this it's an invaluable overview of the 1/7 reinsurance renewals. Yes, I know, not typical reading for many of you but great insight on the state of the market for anyone in the insurance space - not just reinsurance buyers and sellers! #insurance #reinsurance #capital #riskmanagement #renewals *** "We are pleased to present our 1st View Report for July 2024.   "Reinsurance buyers experienced a more welcoming market at 7.1.24 compared to recent years. There were near record returns for reinsurers in 2023, and the first quarter of 2024 has followed a similar trend with up to a 12% improvement in combined loss ratios, helping to build reinsurers' capital base and confidence to deploy their capital. "Insurance-linked securities (ILS) capital has also grown to a record level driven by increased investor interest.   "This has created a more favorable market for buyers, with sufficient capital and capacity to meet demand.   Click here to review the full report: https://lnkd.in/eFw2x9Tm

Why is the risk transfer market surging, and what does it mean for schemes? BW’s Rosie Fantom FIA CERA summarises the key developments during the latest episode of Asset TV UK's Consultant Corner. Watch here 👇

📈 Reinsurers have reached a five-year high in return on equity (ROE), hitting 22% in 2023! This strong performance stems from strategic shifts toward high-liquidity, short-duration investments and increased focus on tax efficiencies. AM Best’s latest report highlights that solid underwriting and a rebalanced investment portfolio have been key to reinsurers’ resilience. Looking ahead, reinsurers are well-positioned with favourable market terms and a focus on high-credit investments, setting the stage for sustained strength amid high-interest-rate conditions. #Reinsurance #Underwriting #ROE #Insurance

Last week Lloyd's hosted their first Capital Markets Day of 2024 to share their market view, including some of the following highlights:    𝐅𝐢𝐯𝐞 𝐘𝐞𝐚𝐫𝐬 𝐨𝐟 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧:   Lloyd's has been making solid progress on its strategic priorities, modernising its digital framework and cutting operating costs. Alongside this, Lloyd’s has led the charge on critical issues like geopolitics, cyber risks, and pandemics. 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞:   2023 was a great year, with an 84% combined ratio and 11.6% premium growth. The balance sheet remains strong, with a £4.6bn reserve margin, resulting in AA ratings from S&P, Fitch, and Kroll. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐑𝐞𝐚𝐜𝐡:   Lloyd's is truly global, with over £52bn in gross written premium spread across 200 lines of business and key markets worldwide. Our extensive network includes 200 reinsurance licences and 77 direct licences. To summarise, John Neal, Lloyd’s CEO, said, “𝐼𝑛 2023 𝑤𝑒 𝑢𝑛𝑑𝑒𝑟𝑤𝑟𝑜𝑡𝑒 𝑟𝑖𝑠𝑘𝑠 𝑤ℎ𝑖𝑐ℎ 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑 𝑜𝑣𝑒𝑟 £50𝑏𝑛 𝑜𝑓 𝑝𝑟𝑒𝑚𝑖𝑢𝑚, 𝑎 𝑓𝑖𝑔𝑢𝑟𝑒 𝑡ℎ𝑎𝑡 𝑖𝑠 𝑟𝑖𝑠𝑖𝑛𝑔. 𝐺𝑙𝑜𝑏𝑎𝑙 𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒 𝑝𝑟𝑒𝑚𝑖𝑢𝑚𝑠 𝑎𝑟𝑒 𝑔𝑟𝑜𝑤𝑖𝑛𝑔 𝑎𝑡 𝑎𝑟𝑜𝑢𝑛𝑑 𝑡𝑤𝑖𝑐𝑒 𝑡ℎ𝑒 𝑔𝑙𝑜𝑏𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝐺𝐷𝑃 𝑎𝑛𝑑 𝐿𝑙𝑜𝑦𝑑’𝑠 𝑔𝑟𝑜𝑤𝑡ℎ 𝑖𝑠 𝑒𝑣𝑒𝑛 𝑏𝑒𝑡𝑡𝑒𝑟 𝑡ℎ𝑎𝑛 𝑡ℎ𝑎𝑡.” We at Hampden believe the current rating environment and the growth opportunity at Lloyd’s provide the optimal time to realise higher returns. You can read the full report from Lloyd’s here - https://lnkd.in/erFb-dMj For more information on how to benefit from investing at Lloyd's or about Hampden Agencies Limited and the services we provide, please visit https://lnkd.in/eWnbMSQ9 #LloydsofLondon #HampdenAgenciesLimited #investment #CapitalMarketsDay #capitalmanagement #assetmanagement #highnetworth  #hnwi  #familyoffices  #lloydsoflondon  #londonmarket #familyoffice #insuranceindustry #insuranceagency #insuranceadvisor #insurance #insurancepodcast #reinsurance #insuranceindustry #insuranceagency #insuranceadvisor (Capital may be at risk)

2024 Unwrapped 🎁 'Strategic Imperatives for P&C Reinsurers in 2025', launched on 17 October written by Christopher Sandilands Partner, Oxbow Partners The report is based on our work with numerous reinsurers and analysis of our Reinsurance Market Model, which contains detailed performance data on 19 of the largest P&C reinsurers accounting for nearly $400bn of premium. - Section 1: Reflection on 2023 market performance - Section 2: Two challenges that P&C reinsurers need to navigate in 2025 - Section 3: Four areas where reinsurers need to act in 2025 “I’m delighted that several reinsurance leaders tell me that this is one of just a handful of publications that they read. They like our analysis and they like our insights. I hope the paper provides some good Christmas reading for anyone who has not got to it yet.” Christopher Sandilands Partner, Oxbow Partners To request the report, visit: https://bit.ly/3CVC1y8 #reinsurance #reinsurers #insurance #strategicimperatives #PandC #reinsurancemarketmodel #oxbowpartners #marketperformance #2024unwrapped