Survey finds share issue most popular way of raising capital
A survey of 271 insurance bosses at Tuesday’s KPMG New York conference found 22% would choose an equity to raise capital in the next 18 months, Dow Jones reports.
- 31.4% said their company would not need capital.
- 17% said they would consider debt
- 12.6% said they would choose reinsurance
- 1.9% said they would consider government backing
But nearly two-thirds see only "moderate" ability to increase underwriting profit, while 27% rated their ability "weak." Only about 9% put the industry in a strong position for the coming years.
The majority said they see merger and acquisition activity rising "moderately" in the coming year.
Pricing the biggest risk
The biggest risk to the industry over the next three to five years is weak pricing, with almost 30% choosing that option over credit risk (23%) and new regulation (16%).
