AM Best Publishes Annual Review of Global Reinsurance Industry; Analysis Highlights Companies’ Favorable Results, Financial Reporting Shifts
September 04 2024 - 3:00AM
Business Wire
As reinsurance industry leaders prepare to gather in Monte Carlo
for the annual Rendez-Vous de Septembre, AM Best’s latest
research on the global industry highlights the segment’s strong
technical results amid an ongoing shift to the IFRS 17 reporting
standard that has altered the performance analysis of these
companies.
Now available in one comprehensive volume, featuring exclusive
extra content, AM Best’s in-depth analysis of key segments and
regional markets spotlights a global momentum that was the main
driver of AM Best’s first-ever positive outlook on the reinsurance
segment in June 2024. Given the comprehensive de-risking measures
and a realignment of interests between reinsurers and primary
carriers, albeit with a lack of new company formations, AM Best
expects the hard pricing conditions to last longer than in previous
cycles. At the same time, IFRS 17, which became effective on Jan.
1, 2023, has been adopted by many reinsurers, and this move has
created challenges for users of the new financial standard as they
adjust to its provisions. This change also has prompted AM Best to
modify its listing of the largest reinsurers, depending on the
reporting standard used.
The report explores factors affecting different reinsurance
market participants. Specific regional observations include:
- Improved underwriting results among reinsurers in Sub-Saharan
Africa, even if the capacity offered by Africa-domiciled reinsurers
remains insufficient to meet market demand.
- Despite resilience among MENA-region reinsurers, certain
markets are experiencing significant levels of economic
deterioration, challenging fiscal maneuverability.
- Catastrophes in the previous year, including Hurricane Otis,
highlight the need for additional capacity in the Latin America
region’s reinsurance markets.
- The Asia-Pacific reinsurance composite achieved significant
growth in 2023, owing mostly to China Re’s international
expansion.
- Better pricing and terms and conditions, along with a strong,
global reach paved the way for a solid year by Europe’s “Big Four”
reinsurers.
- The data and analysis behind AM Best’s latest list of the 50
largest reinsurance groups.
To access the full copy of this comprehensive Best’s Market
Segment Report, please visit
http://www3.ambest.com/bestweek/purchase.asp?record_code=346298.
For all of AM Best’s research on the global reinsurance
industry, please visit Best’s Research.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Edem Kuenyehia Director, Market Development
& Communications +44 20 7397 0280
edem.kuenyehia@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2318
christopher.sharkey@ambest.com