Despite catastrophes, reinsurers' capital strong: Aon Benfield
Reprints
Reinsurers’ capital remains strong despite a series of natural catastrophes this year, according to analysis by reinsurance brokerage Aon Benfield Inc.
Going into this year, international reinsurers’ capital was a record high $470 billion and natural catastrophes that have struck during the first quarter likely will hit reinsurers’ earnings but not their capital, Mike Van Slooten, head of Aon Benfield’s international market analysis team in London at a briefing Tuesday.
International reinsurers’ capital at the end of 2010 was 17% higher than year-end 2009 and the highest since Aon Benfield, a unit of Chicago-based Aon Corp., began tracking the data.
The 28 largest reinsurers Aon Benfield analyzed in its report had capital of $248 billion at the end of 2010, up 18% compared with the end of 2009.
Looking at last year, catastrophe losses and reduced investment gains for many leading reinsurers were counterbalanced by increased capital prompted by the rally in global capital markets and prior-year reserve releases, Mr. Van Slooten said.
Reported loss estimates for the Aon Benfield Aggregate group of companies so far this year total about $12.4 billion, according to Aon Benfield.
“The losses to date fall within expected annual income and represent an earnings event rather than a capital event for the reinsurance industry,” the reinsurance brokerage said in the report, “The Aon Benfield Aggregate: Full year ended December 31, 2010,” at www.aon.com/attachments/reinsurance/180411_aba_fy_2010.pdf.
Read Next
-
Some insurance, reinsurance rate hardening seen: JLT
LONDON—While the recent string of natural catastrophes in Japan, Australia and New Zealand, among others, have not turned the insurance and reinsurance market, pockets of rate hardening are being seen London-based brokerage Jardine Lloyd Thompson Group P.L.C. said during a briefing.
