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The reinsurers have made net profits of$ 4 billion in 2017

by

Justine Montminy

April 23, 2018 09:45

Photo : Freepik

Reinsurers are recorded net profits of us $ 4 billion (G$ US) in 2017, despite the damage that have caused the number of natural disasters, says Aon Benfield. Earnings before taxes amounted to 5.1 billion US$ for the year, while they were$ 20.5 billion US in 2016.

According to Aon, the losses insurable in 2017 amounted to 136 billion US dollars and were paid for by the private sector and the public sector. Aon says that most of his losses have been caused primarily by the hurricanes Harvey, Irma and Maria, and the forest fires in California. These events combined totaled 69 % of the total compensation paid, or 94 billion US dollars in 2017.

Increase of premiums written

The gross premiums written by the aggregate of Aon Benfield, which brings together 21 of reinsurers more important, totalled $ 249 billion US dollars in 2017. Of this total, 174 G$ US is comprised of property and casualty insurance with the primary insurance up 8 %, to 89 billion US dollars.

Reinsurance ceded increased by 5 % compared to last year to reach US$ 85b. The combined ratio has also increased to 107.4 % in 2017, also increase the average of the last five years to 94.7 %.

Predictions for 2018

The preliminary results of Aon show that the first quarter of 2018 has led to the loss of insurable employment 7 US$ billion in comparison to$ 13 billion US last year. Aon attributes this decline to a season of inclement weather is calmer than the same period last year.

The first few months of 2018 have also been marked by two significant mergers and acquisitions, AIG to Validus and AXA at XL Catlin, said Aon. The latter believes that there will be other consolidations to come in the reinsurance industry, caused by the search for growth, the need to optimize expenses and capital efficiency and the external pressure exerted on certain franchises by investors and rating agencies.

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