Kathmandu: Total capital dedicated to the global reinsurance industry has been declined by 11% at half-year 2022 despite reinsurers’ strong premium growth and improving underlying profitability. According to a new report from Gallagher Re, the decline was driven primarily by mark-to-market investment losses.
Gallagher Re has said, although capital has reduced on an accounting basis, rating agency and regulatory measures of capital adequacy have not been impacted as strongly. The global reinsurance industry’s financial strength thus remains healthy, the report states.
Total global dedicated reinsurance capital was $647 billion at the half-year, a decrease of $82 billion from the end of 2021. The most important driver of the fall was $78 billion of realized and unrealized investment losses due to the sell-off in fixed income and equity markets during the first half. Capital returned through buybacks and dividends also exceeded the contribution from net earnings. Source:insurancebizmag
