Net income for the Index remained robust at
Reinsurers are under continued pressure from market pricing weakness that, when exacerbated by natural catastrophes losses***, (H1 2016 increased to
The report highlights that ongoing market pressures are manifesting themselves in a diminishing underlying Return on Equity (RoE), the full effect of which continues to be minimised by prior year reserve releases; for the Subset of the Index****, this underlying RoE reduced from 4.9% in H1 2015 to 4.5% in H1 2016.
Commenting on the report,
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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