US Reinsurance Sector Struggling
Thursday, September 5th, 2002 PropertyDramatically improved rating and coverage conditions for U.S. property-casualty reinsurers has not brought about an overall improvement in industry results, according to the first-half report of the Reinsurance Association of America. A group of 30 U.S. p-c reinsurers reported a combined ratio of 117.6 for the first half of 2002, compared with 115.6 reported by a similar group of reinsurers for the same period last year, according to the Washington-based RAA. The combined ratio for the first six months of 2002 is comprised of a 90.7 loss ratio and a 26.9 expense ratio, RAA noted. "The increase in rates, and improvements in terms and conditions are not going to guarantee that the profitability over the medium-term is going to be sustainable," according to Laline Carvalho, an associate director at Standard & Poor‘s in New York.
