2013-09-16 22:53:03 -
In its recently-issued global reinsurance segment review special report, A.M.
Best Co. notes that reinsurers in Asia have resorted to capital replenishment following large catastrophe losses, while the region’s growth prospects remain a lure for many reinsurers.
Natural catastrophes in 2011 brought significant losses to many Asian reinsurers. Interestingly, many of these reinsurers, except for a few players, quickly restored their balance sheet strength—in terms of risk-based capital—through raising new capital, issuing subordinated debt or reducing asset risks.
Companies became quite proactive in anticipation of a hardening market.
Credit awareness in the market has also increased substantially over the years, and those reinsurers worked quickly to avoid a downgrade in credit quality. However, with additional reinsurance capital, the hardening of the
market was less than many would have expected, except in catastrophe business.
Natural disasters are a challenging factor for Asia-Pacific writers and have affected a large population in Asia, but the corresponding insurance impact remains comparatively low. The 2011 catastrophes highlighted the need for reinsurers to quantify exposures in a region that lacks the full suite of vendor catastrophe models and where data transparency can often be lacking.
To access a full, complimentary copy of the global reinsurance segment review report, please visit www3.ambest.com/bestweek/purchase.asp?record_code=216074
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A.M. Best Asia-Pacific Limited is a subsidiary of A.M. Best Company. A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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