Video: Insurers & Reinsurers Explore New Paths

April 13, 2017

In a recent A.M.BestTV episode, Scott Mangan, senior financial analyst, A.M. Best, discusses a recent briefing that reviews market conditions for Bermuda-based insurers and reinsurers, including expansions into new coverages and sources of capital.

“Some players are growing a little bit quicker than others,” said Mangan. “However, a lot of that is attributable to prior merger and acquisition activity, which is now flowing through on an accounting basis for 2016. Most participants have only seen modest or flat growth.”

Mangan also said he sees that reserve development has declined due to the challenging pricing environment and a drop in the average return-on-equity [ROE] due to lack of investment yield.

“ROE was 7% in 2016, compared with 12.3% in 2013. That is quite a dramatic drop,” said Mangan.

Mangan believes the Bermuda market will not be turning in the near term, unless something happens in the market that produces more favorable pricing.

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