Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

S&P: Consolidation Might Help Life Reinsurance Profits

Your article was successfully shared with the contacts you provided.

NU Online News Service, Sept. 9, 2003, 5:10 p.m. EDT – Consolidation in the world life reinsurance market should give the remaining life reinsurance players the clout they need to increase rates and improve their profits, according to Rodney Clark, a credit analyst at Standard & Poor’s Ratings Services, New York.

By 2004, the global market might consist of only six to eight “credible players,” Clark writes in a commentary on the global reinsurance market.

The fact that many primary life companies in the United States and Europe are ceding more than 70% of their new business to reinsurers should also help reinsurer profits, Clark says.

Clark predicts non-life reinsurers and other companies that could provide new competition will take at least two years to enter the market.

The top 10 life reinsurers wrote $29 billion in premiums in 2002, up from $23 billion in 2001, Clark says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.