Optimism is being countered by an uncertain environment due to underwriting, economic, social and geopolitical factors, said Carlos Wong-Fupuy, senior director, AM Best.
Reinsurers that can balance long-term strategies with effective tactical decisions and sound risk management can still meet, even exceed, return expectations, said AM Best Senior Director Sridhar Manyem and Industry Analyst Helen Andersen.
Despite the current lull, parts of Latin America are prone to hurricanes, earthquakes and other major disasters, said AM Best Director Eli Sanchez and Financial Analyst Ricardo Rodriguez Perez.
Traditional reinsurance capital declined from $475 billion at year-end 2021 to $411 billion at year-end 2022, said Dan Hofmeister, senior financial analyst, AM Best.
U.S.-Bermuda reinsurers well capitalized as composite’s combined ratio improves three points, said Gregory Dickerson, director, AM Best.
