Benfield: Bermuda writers post 6-months premium growth.The Bermuda market's top insurers -and reinsurers saw a 21% aggregate growth in premium and strong earnings for the first half of 2004, but the premium growth rate had slowed significantly, suggesting a "softening but generally disciplined market," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. broker Benfield Group Benfield Group Limited is a reinsurance and risk intermediary based in London, England. It has been listed on the London Stock Exchange since June 2003 and is a constituent of the FTSE 250 Index. plc. In its latest quarterly report in the Bermuda market, Benfield said total premium income for the 16 publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. it tracks in Bermuda rose 21% to $30.3 billion in the first half, down significantly from the 67% growth the same companies enjoyed in the first half of 2003. "Evidence of softening in the property catastrophe market continued to emerge while casualty pricing and conditions appear to be coming under pressure," Benfield said in its Bermuda Quarterly study. Ace Ltd. remained the largest insurer in Bermuda, with a 27% market share, followed by XL Capital Ltd., with a 21% market share and White Mountains Insurance Group White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance. External links
According to Benfield, there was "no discernible dis·cern·i·ble adj. Perceptible, as by the faculty of vision or the intellect. See Synonyms at perceptible. dis·cern  i·bly adv. common
factor" for premium growth among the companies tracked. Axis
Capital Holdings Ltd. was the growth leader in the first half this year,
with premium rising 44% to $1.7 billion, mainly from its reinsurance
segment. The 32% gain in premiums for White Mountains White Mountains, part of the Appalachian system, N N.H. and SW Maine, rising to 6,288 ft (1,917 m) at Mt. Washington in the Presidential Range and to 5,249 ft (1,600 m) at Mt. Lafayette in the Franconia Mountains. Crawford Notch separates these two main groups. came mainly from
its acquisition of Swedish reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. Sirius in the second quarter. XL Capital's 31% premium increase derived from a single-premium annuity transaction in the United Kingdom, and PXRE Group Ltd. reported a 10% drop in premium because of a planned withdrawal from the finite risk market. Casualty lines were the "substantial focus" of the Bermuda insurers in the first half, reflecting relatively attractive pricing conditions, said Benfield, though the post 9/11 start-ups maintained their positions as multiline insurers. Pricing declines in property lines continued in the first half, the broker said. In the second quarter, there were some signs of pricing softness in some casualty lines as well. "Signs that some casualty lines are weakening will be a disappointment, as this sector has been considered key to underpinning un·der·pin·ning n. 1. Material or masonry used to support a structure, such as a wall. 2. A support or foundation. Often used in the plural. 3. Informal The human legs. Often used in the plural. the maintenance of underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. discipline," the study said. "Nevertheless, most CEOs remain reasonably bullish about prospects for only a gentle ebbing of rates in the face of growing competition." The earnings power of the insurers and reinsurers on Benfield's list was solid, with aggregate net income rising 33% to $4.1 billion. Technical price adequacy, "generally solid" investment income and 11 straight quarters of "benign" natural catastrophe losses were the factors, said Benfield. The study noted Hurricane Charley's potential impact on the Bermuda market, saying potential losses represent 17% to 21% of total net income for the first six months of the year," enough to give underwriters pause for thought if not arrest the decline in property catastrophe prices." The aggregate loss estimates for the 16 companies tracked by Benfield range from $701 million to $845 million for Hurricane Charley This article is about the Atlantic hurricane of 2004; for other storms named Hurricane Charley, see Hurricane Charley (disambiguation). Hurricane Charley was the third named storm, the second hurricane, and the second major hurricane of the 2004 Atlantic hurricane season. alone. RenaissanceRe, Ace and XL all have loss estimates of at least $100 million each. Hurricane Frances This article is about the Atlantic hurricane of 2004; for other storms of the same name, see Hurricane Frances (disambiguation) Hurricane Frances was the sixth named storm, the fourth hurricane, and the third major hurricane of the 2004 Atlantic hurricane season. , which hit Florida after the study went to press, was not included. Hurricane Ivan This article is about the Atlantic hurricane of 2004. For other storms of the same name, see Tropical Storm Ivan (disambiguation). Hurricane Ivan was the strongest hurricane of the 2004 Atlantic hurricane season. also may be a factor in the Bermuda market's performance for the third quarter, depending on where it makes landfall land·fall n. 1. The act or an instance of sighting or reaching land after a voyage or flight. 2. The land sighted or reached after a voyage or flight. .
Still Going Strong ...
Most of these Bermuda publicly listed
reinsurers showed growth in first-half
gross premiums, despite some
market softening.
($ Millions)
6 Months 6 Months %
Company 2003 2004 Change
Quanta -- $254 NA
Axis $1,160 1,673 44%
White Mountains 1,828 2,407 32%
XL 5,184 6,792 31%
RenaissanceRe 898 1,107 23%
Aspen 830 1,021 23%
Platinum 681 822 21%
Arch 1,536 1,826 19%
AWAC 839 982 17%
PartnerRe 2,099 2,396 14%
ACE 7,423 8,347 12%
IPC 256 283 10%
Endurance 1,015 1,071 6%
Max Re 596 623 5%
Montpelier 561 544 -3%
PXRE 179 160 -10%
Total $25,085 $30,308 21%
Source: Benfield Group Ltd.
Bermuda Writers Report
Rising Net Income
Aggregate net income for Bermuda
insurers was up 33% due to technical
price adequacy, "generally solid"
investment income and 11 straight
quarters of "benign" natural catastrophe
losses.
($ Millions)
6 Months 6 Months %
Company 2003 2004 Change
ACE $604 $838 39%
XL 587 816 39%
Axis 225 308 37%
RenaissanceRe 331 287 -14%
White Mountains 187 264 42%
PartnerRe 227 256 13%
Montpelier 216 216 0%
Endurance 118 216 83%
Arch 114 191 68%
Aspen 65 166 155%
AWAC 129 159 23%
IPC 133 148 11%
Platinum 57 105 83%
PXRE 45 66 47%
Max Re 45 55 22%
Quanta -- -3 NA
Total $3,083 $4,088 33%
Source: Benfield Group Ltd.
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