Reinsurers are losing the capital argument

Investors do not seem at all convinced that a general hard market is imminent to judge from their rating of reinsurance company shares: most are standing at discounts to book value, and only Arch Capital, Hannover Re and RenaissanceRe are considered worth more than their book value

Reinsurers find themselves in ruder health than they might have expected six months ago as they prepare for the first skirmish of the January 2010 renewal season. Intermediary Guy Carpenter calculates that the reinsurance market’s aggregate shareholders’ equity increased by 8.2% during the first half of this year after plummeting by 18% in 2008.