OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, on location from the Rendez-Vous de Septembre reinsurance conference in Monte Carlo, the hot topic at the second day of the conference is the new capital that has flooded the reinsurance market; however, veterans say that the new capital is really an old story. What is new is how to harness the capital.
Tad Montross, chairman, president and chief executive officer of General Reinsurance Corporation, said he believes that presently there is a lot of hyperbole in the market, especially with pension funds entering and participating in insurance risk securities, as well as hedge funds establishing reinsurance companies offshore. However, Montross added that, “this is basically the old normal, since capital has been coming in and out of this industry for the last 25-30 years.”
John Berger, chairman, chief executive officer and chief underwriting officer at Third Point Reinsurance Ltd., addresses the fact that markets are cyclical; and although this is a soft one, it is competitive. XL Group’s Chief Executive Officer Michael McGavick says that the only way to make sure that the new capital is being used efficiently is to come up with new ideas that it can support globally.
Also in this episode, A.M. Best Managing Director, Analytics Stefan Holzberger said that reinsurers are finding new ways to work with hedge funds in order to divide the responsibility of underwriting and investments. Click on http://www.ambest.com/v.asp?v=rvs14day2 to view the video program.
Full-length interviews are available as well. Go to http://www.ambest.tv/montecarlo to see new interviews throughout the conference.
- Michael McGavick, chief executive officer, XL Group: http://www.ambest.com/v.asp?v=mcgavick914.
- Mo Tooker, president, General Reinsurance Corporation: http://www.ambest.com/v.asp?v=tooker914.
- Stefan Holzberger, managing director, analytics, A.M. Best Company: http://www.ambest.com/v.asp?v=holzberger914.
- Richard Mayock, global insurance broker leader, PwC (US): http://www.ambest.com/v.asp?v=mayock914.
- Kai-Uwe Schanz, chairman, Dr. Schanz, Alms & Company AG: http://www.ambest.com/v.asp?v=schanz914.
- Mike Krefta, chief underwriting officer, Hiscox Re: http://www.ambest.com/v.asp?v=krefta914.
- Stephen Netherway, partner, head of Insurance Sector Group, CMS Cameron McKenna: http://www.ambest.com/v.asp?v=netherway914.
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