Home >
News

8th of February 2012

Reinsurance M&As will increase to compete for casualty business, say experts

Matthew Broomfield 31/08/2010

Mergers and acquisitions (M&As) in the reinsurance industry are likely to increase to help companies better compete for casualty business, say reinsurance experts. This is because the casualty sector requires a stronger balance sheet, which M&As would provide.

This will be in spite of reinsurers’ hesitancy to spend to acquire other companies, because of reduced stock values and lower returns.

“I do think that the credible balance sheet size is emerging to be around $3 to $5bn in order to participate in the casualty business,” said Bryon Ehrhard (pictured right), chairman of Aon Benfield's analytics and investment banking teams. “You're going to find combinations that get people to that critical level. $5bn or $6bn is certainly more comfortable as a broker representing clients bringing casualty or long-tail business to those markets,” he added.

Stephen Hitchcock, managing director, Lockton Re, thinks pressure to use investor’s money effectively will also drive M&As. “Either companies return capital they're not using or they merge. So I think there are some deals. There's work to be done and when we get to January, there will be some that come out.”

The discussion was part of the webinar State of the Global Reinsurance Markets, sponsored by the A.M. Best Company.

Tags: AM Best, Aon Benfield, M&G Investment Management

Email
Print
Share
Text Size Decrease text size Increase text size

Be the first to comment on this article!

Cid
Cell
Company
Guide
Company &
Ratings
Search

Captive Insurance Database (CID) is the world's leading and most comprehensive online source of captive market intelligence.

CID gives users instant access to the names of parent companies who currently own a captive. It also gives you the captive name, manager, license date and the type of captive the parent company are running. Uniquely CID also contains vital contact information on captive owners and sponsors. This can be used to chase after new business or simply to get a better grasp of the market

CID will start helping you in,

•    Winning more business proactively – Search from 5,292 captives and over 3,000 captive owners who you can offer your services to.
•    Increasing profit and efficiency – Target specific captive owners and sponsors quicker, saving you time.
•    Building relationships – Detailed contact information for each decision-maker

An annual CID license costs just £1,195 + VAT.

Already a CID user? LOGIN to the database here.

Order a 2 year subscription and SAVE 25%
The license includes full online access to CID and a free annual hardcopy of CID (worth £610) . To find out more contact Ryan Nash on +44 (0) 20 7029 4065 or r.nash@pageantmedia.com

Company and Ratings Search

Search A.M. Best's extensive database of life/health, property/casualty and insurance companies worldwide.

Cell Company Guide

WELCOME TO THE Captive Review Cell Company Handbook 2009 – the second edition of our global directory of cell company jurisdictions. Since we last published this directory, the general attitude toward cell companies seems to have shifted up a gear. Whereas single-parent companies have long ruled the captive roost, a slight uptick in the formation of pure captives at the beginning of this year can’t hide the fact that growth in this market is still sluggish.

Pellentesque feugiat arcu vitae lacus elementum in ullamcorper diam pulvinar. In odio massa, facilisis sed dignissim vel, vehicula ac diam. Curabitur tempor, quam nec aliquam tempus, dui lorem venenatis arcu

Mauris accumsan orci ut turpis placerat condimentum. Ut sit amet lobortis purus. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos.

CID