Aon Benfield survey says reinsurers had good fortune
Aon Benfield Aggregate (ABA) quarterly report has said that nine month underwriting results for 23 global reinsurers totalled $12.7bn compared with $4.3bn in 2008.
The combined ratio was 91.2%. Reserve releases from prior accident years aided results.
The absence of large catastrophe losses and lower attritional losses led to a 5.7% improvement in the loss ratio, which dropped to 62.2% in the first half of 2009.
The expense ratio was stable at 29.0%. All but one company in the survey reported a combined ratio of less than 100%.
Low Catastrophe losses
Reinsurer underwriting results were better than expected due to the unusually low level of natural catastrophes in the third quarter, it said.
Bryon Ehrhart, chief executive officer of Aon Benfield Analytics, said: “Reinsurers are very well capitalised and well positioned to serve cedents through a less anxious renewal season for January 2010 business. Reinsurer balance sheets were mildly impacted by the recent credit and liquidity crisis.
“The prudent risk management practices of reinsurers allowed the orderly renewal of every core reinsurance program in 2009. Good fortune through the 2009 hurricane season combined with improved investment valuations to return reinsurers’ capital to near peak, pre-crisis levels through the first nine months of 2009.”
