World Insurance Report
Exchange rate factor limits premium growth for top 10 reinsurers
As in previous years, currency exchange rate factors impacted year-on-year premium increases for many companies in our survey, with Munich Re reporting that its overall reinsurance premium volume rose only marginally by 1.2%, mainly because of negative currency translation effects. If exchange rates had remained unchanged, the reinsurer’s premium income would have risen by 7.3%. However, other companies, insulated from the vicissitudes of year-end foreign exchange rates, recorded above-average premium growth in 2008. These included India’s state reinsurer General Insurance Corporation of India (up 29% in local currency, up 41% in US dollars) while Bermudian newcomers Validus, Maiden, and Flagstone generated net premium increases of 35%, 194% and 32%, respectively
The world’s top 10 non-life reinsurers wrote around US$70.2bn in net premiums in 2008, according to WIR’s latest annual survey
of the market.