Reinsurers Looking for Recovery.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. is a multibillion-dollar industry. With so much money at stake, the risks are high. Reinsurers know a thing or two about risk, and they don't want to risk having another year like 1999. The industry last year posted a combined ratio of 114.8, more than 11 points higher than in 1998. As reinsurers from around the globe gather in Monte Carlo Monte Carlo (môNtā` kärlō`), town (1982 pop. 13,150), principality of Monaco, on the Mediterranean Sea and the French Riviera. next month for the Rendez-Vous de Septembre ("A Break in the Clouds," page 61), many are hoping to hear that the industry is bouncing back from its worst annual performance in 15 years. A survey this year showed that 32 U.S. property/casualty reinsurers wrote $21.2 billion in premiums during 1999, a 12.2% increase over 1998. But those companies posted an 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. loss of $2.8 billion. Despite an unprofitable year, the reinsurance industry shows signs of expanding worldwide. In Bermuda and the Caribbean, life reinsurers are setting up shop to target the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, the largest in the world for reinsurers ("Ocean View," page 26). Companies such as Annuity & Life Reassurance Ltd. and Maximus Reinsurance Holdings Ltd. are taking advantage of tax benefits and a more open regulatory environment in this region of the world. Japan offers the greatest potential for life reinsurers ("Proceed With Caution," page 31). Japan has the world's largest life insurance market, but less than 1% of its life insurance is reinsured, compared with 20% in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 30% in Canada. More Accolades: Best's Review received two national awards in the 22nd Annual American Society of Business Press Editors Awards Competition. Senior Associate Editor Ron Panko received the bronze award Several organizations issue awards with this name:
ASBPE American Society of Business Press Editors Eastern Region awards: a silver award for Panko's article and a silver for Alan S. Rutkin's Insight columns published in the January and August 1999 editions--"Ready, Aim, Sue" and "Reining in the Experts." David T. Hilgen |
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