Apr 4, 2014 - understand, manage and transfer risk through innovative solutions and personalized ...... collateralized support for ACE Tempest Re (Jan 2014).
The Aon Benfield Aggregate Results for the year ended December 31, 2013
Empower ResultsTM
Contents Global Reinsurer Capital
3
Executive Summary
4
ABA Capital
5
Capital Development
5
Capital Management
7
Premium Income Earnings
8 12
Underwriting Performance
13
Investment Results
15
Net Income
15
Return on Equity
16
ABA Business Model Evolution
19
Who Are The New Investors?
19
How Is New Money Being Deployed?
19
Implications for ‘Traditional’ Reinsurers
19
Convergence in Action
19
ABA Valuation
21
Financial Strength Ratings
23
Appendix 1: ABA Data
24
About Aon Benfield Aon Benfield, a division of Aon plc, is the world’s leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world’s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals’ expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.
Aon Benfield
Global Reinsurer Capital Aon Benfield estimates that global reinsurer capital totaled USD540 billion at December 31, 2013, an increase of 7% relative to December 31, 2012. This calculation is a broad measure of capital available for insurers to trade risk with and includes both traditional and alternative forms of reinsurer capital. Exhibit 1: Global Reinsurer Capital 600
Traditional
Alternative
470
500
USD (billions)
410
400
400
505
455
7% 11%
-3% 18%
340 18%
-17%
300 200
540
Global Reinsurer Capital
388 321
447
428
378
466
490
100 0
22
19
22
24
28
39
50
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Source: Company reports, Aon Benfield Analytics
Major insurers and reinsurers generally maintained their solid operating performance during 2013, aided by economic recovery in the United States, exposure growth in emerging markets and below average insured catastrophe losses. However, the support to reported capital positions was muted by unrealized losses on bond portfolios, driven by rising interest rates associated with ‘tapering’ of the Federal Reserve’s quantitative easing program. The involvement of capital market investors in the reinsurance sector through non-equity participations continues to expand, presenting a growing challenge to ‘traditional’ reinsurer business models.
A NOTE OF CAUTION ON THE VAGARIES OF INSURANCE ACCOUNTING Accounting choices can influence reported results. There have always been inconsistencies in the methodology applied to the calculation of co
Appendix 1: Aon Benfield Aggregate Data ... investment income and the capital market recovery effect seen in the prior year was ..... ACE Bermuda Insurance Ltd.
Aug 28, 2013 - ... has access to the broadest portfolio of integrated capital solutions and ..... to provide collateralized capacity for ACE Tempest Re (Apr 2013).
Source: Company reports, Aon Benfield Analytics. Major insurers and reinsurers generally maintained their solid operating performance during the first.
Source: Company reports, Aon Benfield Market Analysis. Capital Development ... Exhibit 3: Year-to-Date ABA Shareholders' Funds Development. Source: Company reports ...... resources solutions and outsourcing services. Through its more.
Equally, research from the Aon Benfield Natural Hazard Centre in. South Africa was critical for the hazard ..... answer. I would not call field trips to towns which badly .... APAC. George Attard. Head of Analytics for Asia Pacific t: + 6562398739.
Sep 5, 2013 - remains up 1 percent compared to year end 2012. .... The transaction utilized European Bank for Reconstruction and Development ...... be accounted for using the same approach used to account for the .... off-shore reinsurers.
scientific and technical knowledge in model development ... Beijing Normal University, a partner of Aon Benfield .... Various US Earthquake (Trinidad Colorado,.
Sep 3, 2013 - forecasted GDP growth in all countries studied. ... Singapore (offshore shore) ... global rating agencies (A.M. Best, Fitch, Moody's, and S&P).
into catastrophe models and interview John. McAneney ... Interview with John McAneney, Risk Frontiers. 9 ... Atlantic hurricane season was associated with the.
Nov 3, 2015 - Magnitude-7.5 earthquake leaves hundreds dead in Afghanistan and Pakistan .... Mesa, which led to significant damage to roofs and windows of homes, ...... outbuildings, mobile homes, single or multiple family dwellings, and.
