Increase in reinsurers’ combined ratio as of 2014

November 12, 2014
Used with permission from Microsoft Office (modified picture)
According to Standard & Poor's, reinsurers’ profitability is poised to slowdown as of 2014. Interest rates have been low for several years and rates are down, and nothing is auspicious of any immediate reversal of the trend.

Used with permission from Microsoft Office (modified picture) Reinsurers’ combined ratio is poised to increase from 92% in 2013 to 95% by the end of 2014. It will deteriorate further in 2015 with a rate ranging between 98% and 104%.
Many reinsurers are also threatened by the concentration in the sector. All of these factors should lead them to think about a new economic model.


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