Taking into account capital from alternative markets and a pro rata share of capital from insurance groups where reinsurance makes up more than 10% of their total premium the revised figure is
According to the report, aggregate net income for companies making up the Willis Re Index reduced to
In the face of testing market conditions, reinsurers have continued to actively manage their capital through dividends and share buy backs, totaling
For companies making up the Subset of the Willis Re Index (i.e. companies which provide more detailed financial disclosure), the reported return on equity (ROE) fell to 8.2% from 10.2% in the previous year. When adjusted for reserve releases and normalized annual catastrophe losses, the underlying ROE for the Subset reduced to 3.3% from 3.4% the previous year.
Rising expense ratios continued to undermine the reported ROE figures for the Subset which, using the 2007 expense ratio as a base resulted in a 2.5% reduction in reported ROE, an increase from 2.4% in the previous year.
Download the full report: The Willis Re Reinsurance Market Report is a biannual publication providing in-depth analysis of the size and performance of the reinsurance market. Analysis is based on the Willis Reinsurance Index group of companies. In 2016 The Index includes 37 companies from across the globe.
* INDEX relates to those companies listed within Appendix 1 of the report. Merger and acquisition activity has resulted in the exclusion of a number of reinsurers from the INDEX compared to H1 2015. We have also observed some distortions occurring within our industry-wide performance indicators due to the lack of relevant financial disclosure for the groups involved in these deals.
** Net income and capital return figures reflect a change in the composition of the INDEX owing to M&A activity and include reporting from companies previously unavailable at the time of our half year 2015 report.
*** For the purposes of the report the term catastrophe loss reflects generally large single event claims as reported by the companies themselves. A catastrophe related loss may therefore not appear in our numbers as ‘Cat Loss’ unless it reaches a value that exceeds the company’s own threshold for disclosure.
**** SUBSET is defined as those companies that make the relevant disclosure in relation to cat losses and prior year reserve releases. All constituents of the SUBSET are publicly listed groups that compose 58% of the aggregate capital INDEX.
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Annie Roberts: +44 20 3124 7080 | Annie.Roberts@willistowerswatson.com INVESTORS Aida Sukys: +1 703 258 8033 | Aida.Sukys@willistowerswatson.com