Reinsurers struggle for profits during first half of 2001

The impact of firmer rates was reflected in substantial increases in premium income for US and Bermudian reinsurers in the first half of the year. But catastrophe losses, reserve strengthening and poorer investment results meant that profitability did not improve in all cases. Total net premiums written by the 14 companies surveyed rose by 23%, but seven companies showed a deterioration in underwriting results measured by their combined ratios while four – Ace Global Re, Folksamerica, Transatlantic Re and Trenwick – reported a fall in profits. Everest Re, Max Re and RenaissanceRe relied on investment and other income to keep the bottom line moving ahead.