Reinsurers’ ability to take recent losses in their stride underlines their value and resilience in a rapidly evolving risk and economic landscape. The problem is that most are struggling to power growth.
Mature market returns are steady. But key areas of business are becoming increasingly commoditised. While emerging markets are seen by many reinsurers as holding the key to growth, competition is intensifying and margins are being squeezed. With returns lower than anticipated, many analysts and investors are coming to question whether reinsurers' growth plans are sufficiently aligned with shareholder interests.