Economic Growth Helps Insurers, Reinsurers In 2018

Rate increases began to bolster the bottom line for reinsurers during the first half of 2018, and insurers saw added income from higher interest rates and a growing U.S. economy, say analysts surveying the sector’s second-quarter results. But the 2017 catastrophes, which triggered some premium hikes for insurers and reinsurers, are still affecting results nearly a year later as reserves continue to be adjusted. “Reinsurance rate increases, which became effective with January 1 renewals are now contributing to income,” said Meyer Shields, managing director at Keefe, Bruyette & Woods Inc. in Baltimore.