A.M.BestTV: London Market Competition Intensifies

OLDWICK, N.J--()--In this second of four “First Monday” episodes, A.M. Best’s Director of Analytics Catherine Thomas speaks about how traditional business models in the London market are threatened by changing market dynamics and economic uncertainty. Click on http://www.ambest.com/v.asp?v=fmlondon715 to view the video program.

The remaining “First Monday’ episodes will focus on interviews conducted with Thomas and Managing Director of Analytics Stefan Holzberger on how London’s standing as a key global insurance center would be diminished if the United Kingdom were to exit the European Union and how market conditions and the looming start of Solvency II have prompted European insurers to increasingly tap capital markets, respectively. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.

In the London market, trading conditions continue to be difficult as insurers contend with changing buying habits and the growing availability of alternative capital in the form of sidecars and catastrophe bonds. Most notably is the intense competition in the reinsurance market, with operating margins squeezed as insurers vie to protect their market share. Thomas describes the current market conditions in London. “The current market conditions for London market insurers are difficult. Pricing pressures are most intense for property cap business and competition in the reinsurance business is intense, due to the abundance of traditional and alternative capacities. ”

Thomas also addresses the state of mergers and acquisitions (M&A) in London. “Over the last 12 months, A.M. Best has observed a lot of M&A transactions, and there is no reason not to believe this will not continue in the near term. Lloyd’s especially remains attractive to both private equity and trade buyers, in part due to its capital-efficient structure, but also because of the international licenses it has.”

Recent episodes of A.M.BestTV include:

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  • Insurers Explore New Paths to Asset Management: Insurers are searching for growth and better yields through new investment opportunities via asset managers, private placements and global venues: http://www.ambest.com/v.asp?v=asset615.
  • Captive Proponents Push to Clarify Premium Tax Issue: Two senators recently reintroduced legislation that proposes to amend the Nonadmitted and Reinsurance Reform Act of 2010, which determines how surplus lines taxes are paid by nonadmitted insurers: http://www.ambest.com/v.asp?v=nrra615.
  • AXIS’ CEO and PartnerRe’s Chairman Tout Benefits of Announced Merger: A recent interview given by Albert Benchimol, president and chief executive officer at AXIS Capital Holdings Limited and Jean-Paul Montupet, chairman at PartnerRe Ltd, concerning the proposed merger between their two companies: http://www.ambest.com/v.asp?v=ap615.

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

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

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

Contacts

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