As reinsurance rates begin to ebb, those European companies unencumbered by recent problems started to outpace their peers in the first quarter of 2005, according to the latest European reinsurance quarterly report from Benfield.

“The recent run of catastrophes including windstorm Erwin, the Suncor oil plant fire in Canada and the Windsor Tower fire in Madrid cost Europe's leading reinsurers €150m in the first quarter of 2005” said Benfield's industry analysis and research team member Lewis Phillips.

“Whilst Munich Re and Hannover Re reported healthy profit increases, driven by growth in life & health reinsurance and property & casualty reinsurance segments, restructuring was still a drag at SCOR and underwriting losses pushed Converium into a $66 million pre-tax loss.”

The 20 page report also noted total premium income for the four reinsurers surveyed fell as the companies maintained a disciplined stance to underwriting.

Hannover Re was alone in growing premiums (up 12%), as it benefited from its higher credit ratings and continued pursuit of growth in profitable market areas.

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