Reinsurers’ underwriting gains in the first half of 2013 have been offset by increased unrealised investment losses, according to a new report by Fitch Ratings.
The report, Global Reinsurers’ Mid-Year 2013 Financial Results, explains that while underwriting profitability has been healthy, reinsurers have been experiencing investment losses on fixed maturities.
The losses have resulted in a shareholders’ equity growth of only 1.3 percent for non-life reinsurers during the first half of 2013. According to the report, underwriting opportunities also remained limited, resulting in only a marginal growth in premiums written.
The report also found that Fitch rated global reinsurers improved their underwriting combined ratio to 85.9 percent in the first half of 2013, compared with 87.7 percent in the first half of 2012.
The global reinsurance industry also experienced below-average natural catastrophe losses of $13 billion in the first half of this year, below the 10-year average of $22 billion.
According to the report, the majority of the losses came from flooding in Europe, Canada and Australia, and severe thunderstorms in the US.
To read the report in its entirety visit the Fitch Ratings website.
