Reinsurer underwriting results down in 2017: Willis Towers Watson
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Underwriting results for reinsurers deteriorated in 2017, but shareholders capital and alternative capital grew, according to report released Monday by Willis Towers Watson P.L.C.
The combined ratio for the Willis Reinsurance Index of 34 reinsurers rose to 104.8% in 2017 from 94.4% in 2016, according to the Reinsurance Market Report Results for Year-End 2017 said.
This as the global insured catastrophe losses increased to $144.0 billion in 2017 from just $56.0 billion in 2016, the report said, using Swiss Re sigma figures.
“This increase in natural catastrophe losses was driven by hurricanes Harvey, Irma and Maria,” the report said.
Net income for the companies in the index withered to $12.0 billion in 2017 from $26.6 billion in 2016, the report said.
Shareholders equity at year-end 2017 increased 7.8% to $371.0 billion from $344.1 billion at the end of 2016, the report said.
Unrealized investment gains of $34.7 billion helped drive the increase in equity, with National Indemnity Co., a Berkshire Hathaway Inc. unit, contributing $30.2 billion of that.
Alternative capital also increased, to $88.0 billion at the end of 2017 compared with $75.0 billion at year-end 2016, “despite the draw-down of some catastrophe bonds and collateralized reinsurance and retrocession layers in the wake of the 2017 Atlantic hurricanes,” Willis said in a statement released with the report.
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