Asia's reinsurers are looking to grow again
A.M. Best Co notes that reinsurers in Asia have resorted to capital replenishment following large catastrophe losses, while the region's growth prospects remain a lure for many reinsurers.
Based on its recently-issued global reinsurance segment review special report, the company said in a statement issued today natural catastrophes in 2011 brought significant losses to many Asian reinsurers.
Interestingly, many of these reinsurers, except for a few players, quickly restored their balance sheet strength-in terms of risk-based capital-through raising new capital, issuing subordinated debt or reducing asset risks.
Companies became quite proactive in anticipation of a hardening market. Credit awareness in the market has also increased substantially over the years, and those reinsurers worked quickly to avoid a downgrade in credit quality.
The 2011 catastrophes highlighted the need for reinsurers to quantify exposures in a region that lacks the full suite of vendor catastrophe models and where data transparency can often be lacking.-- Bernama