Reinsurers CR for 9 months 09

[twacowfca]

Aon Benfield (Dec 24 09) reports reinsurers aggregate CR for first 9 mos 09

was 91.2%.  Reserve releases added an additional 3.2% to results.

( This info is from a private service so no link available. Sorry)

 

This info is now public.  Link is

 

www.webnewswire.com/node/492347

[Crip1]

This would not bode well for market hardening in 2010.

 

-Crip

[Mikenhe]

This would not bode well for market hardening in 2010.

 

-Crip

 

it bodes very well for companies who typically reserve high and reduce to more accurate levels  later.. like FFH...

[twacowfca]

This would not bode well for market hardening in 2010.

 

-Crip

 

 

Interest rates are low now, and it's not rational to pay much for float to invest in a low return environment.  Reinsurers know they lucked out with no

supercats in 09.  Some have announced big share buybacks.  Axis in particular has had a history of using

retained earnings to expand their business, but even they have announced a large share repurchase.

Reinsurers don't have large staffs or agents they are obligated to

keep employed and are structurally better able to adjust to less demand by writing less business than

primary insurers.