Dark times for Asian reinsurers

Moungmo Lee, AM Best Asia-Pacific

Most Asian reinsurers’ results were favourable in 2013, aided by the lack of catastrophes in the region and disciplined underwriting after major losses in 2011. Investment yields continue to be low, but reinsurers are not taking additional risk for higher investment returns. Although it has been said the softening market may pose a threat to reinsurance companies and increase potential volatility, it should be noted the risk management practices of Asian reinsurers have improved dramatically over the years. Companies are actively introducing measures to cope with the challenging market environment.