A.M. BestTV: Facing Tough Market, Bermuda Insurers and Reinsurers Explore New Paths to Growth, Says A.M. Best Analyst

OLDWICK, N.J.--()--In this A.M.BestTV episode, Scott Mangan, senior financial analyst, A.M. Best, discusses a recent briefing that reviews market conditions for Bermuda-based insurers and reinsurers, including expansions into new coverages and sources of capital. Click on http://www.ambest.com/v.asp?v=bermuda417 to view the entire program.

In 2016, property/casualty premiums in the Bermuda market were at their highest rate for the past five years on a net basis; however, insurers continue to face negative trends.

“Some players are growing a little bit quicker than others,” said Mangan. “However, a lot of that is attributable to prior merger and acquisition activity, which is now flowing through on an accounting basis for 2016. Most participants have only seen modest or flat growth.”

Mangan also said he sees that reserve development has declined due to the challenging pricing environment and a drop in the average return-on-equity (ROE) due to lack of investment yield. “ROE was 7% in 2016, compared with 12.3% in 2013. That is quite a dramatic drop,” said Mangan.

Mangan believes the Bermuda market will not be turning in the near term, unless something happens in the market that produces more favorable pricing.

To read the Best’s Briefing, titled, “Bermuda Market (Re)Insurers Continue To Fight the Strong Undercurrent of a Challenging Market,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=260129.

Recent episodes of A.M.BestTV include:

  • Ogden Rate Changes Will Hurt Results But Boost Premiums. Says A.M. Best Analyst: Myles Gould, senior financial analyst, A.M. Best, said recent statistical changes that raise payouts for injury claims in the United Kingdom will affect non-life insurers, but are not expected to trigger rating changes: http://www.ambest.com/v.asp?v=ogden417.
  • Hammering Out the New Risks of Construction: Legal and insurance panelists examine emerging liability issues, such as how new standards are affecting the sector, and where insurers will see the next exposures: http://www.ambest.com/v.asp?v=construction317.
  • Willis' Angelini: Asian Insurers Pursue Mergers &Acquisitions Via Multiple Strategies: Kevin Angelini, head of strategy, Asia-Pacific, Willis Towers Watson, said insurers in Japan were relatively early to making international acquisitions, but that insurers in China and elsewhere are pursuing different strategies to acquire companies and capabilities: http://www.ambest.com/v.asp?v=angelini417.
  • Data Drought Limiting Cyber Coverage Growth: A report from the Deloitte Center for Financial Services says the growth of cyber coverage is limited on both sides, as prospective insureds are not fully aware of their exposures and insurers have limited information with which to underwrite risks: http://www.ambest.com/v.asp?v=deloitte317.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com