HVRRF - Reinsurance Cycle No Longer Stuck To The Bottom Analysts Hope
Equity analysts believe that the reinsurance price cycle is lifting itself clear of the bottom of the market, thanks to a number of factors related to losses, profitability and excess capital.
However, the questions that have to be asked are, how high does the cycle need to lift itself in order to deliver sustainable returns on equity (RoEs) for the traditional reinsurance market, and is a slight increase going to be enough without a significant increase in expense and capital efficiency?
Traditional reinsurance firms have been struggling to make sufficient returns to keep them profitable