September 7, 2018 11:30
According to a report the firm’s credit rating Moody’s, reinsurers are recorded in the second quarter of 2018 net profits of $ 6.6 billion (G$). This is an increase of 17.4% compared to profits of 5.6 G$ raised to the same period last year.
The increase in profits is attributed mainly to the decrease in catastrophe losses, higher investment income related to higher interest rates and the growth of the earned premiums. The results in increase in the first half of the year are experiencing a similar scenario, according to the firm rating.
Moody’s also indicates that the average combined ratio of 89% was achieved for the second quarter of 2018, compared to 97 % in the same period last year.
Less catastrophe losses than the average
The preliminary report by Sigma, the Swiss Re Institute, published this summer, had estimated that the natural disasters of the first half of the year 2018 had led to economic losses of 34 billion u.s. dollars (G$ US). This number is quite low according to the reinsurer, as at the same date last year, the losses amounted to 58 billion US dollars.
Munich Re had made a similar argument in saying that the losses recorded in the first half were the lowest since 2005.