The aggregation of severe re/insurance losses from the recent natural catastrophes across North and South America are not significant enough to impact the current trend of the P&C reinsurance market softening, according to CreditSights analysts.
P&C reinsurance continues to be characterised by an excess supply of capital, while primary insurers have slightly reduced their reinsurance needs, CreditSights said.
Most U.S. and European reinsurers remain well-capitalised and able to remain afloat despite the heavy losses of 2017 natural catastrophes, due to the last couple of years of relatively benign losses meaning reinsurers have enjoyed good underwriting profitability.
The high capital levels of the sector adds to the resiliency of the global reinsurance industry in the face of large insured losses, but reduces the probability of any significant impact to pricing throughout the broader market from this year’s events.
European reinsurers remain the top global P&C players, with Swiss Re overtaking Munich Re as leading reinsurer, followed by Hannover Re and SCOR, says the report.
Berkshire Hathaway is the leading U.S. reinsurer, ranked 5th globally by A.M. Best, while Reinsurance Group of America is the 7th largest reinsurer followed by Bermuda’s Everest Re.
China Re and Korea Re have remained in the top 10 category, showing stable year-on-year rankings, CreditSights said.
