Disaster losses lower, US accounts for majority of insured losses
The latest
Aon Benfield report on global catastrophes shows a 58 per cent drop in the first-half average for 2015. Global natural disaster losses during the first half of 2015, from both an economic and insured loss perspective, were each below the 10-year average; preliminary figures show economic losses of U$46 billion with insured losses of $15 billion, 47 per cent below the 10-year average.
The percentage of losses that were insured was 31 per cent, higher than the 10-year average of 27 per cent as many disasters occurred in regions with higher insurance penetration. A clear majority (73 per cent) of the insured losses were in the United States due to an active winter season combined with numerous spring severe convective storm events. Asia Pacific was second with 14 per cent and Europe, Middle East & Africa was third with 11 per cent of the insured loss.
ACE reports 21 per cent rise in net income
Insurer ACE has reported that its net income for the second quarter of 2015 was up 21 per cent from a year earlier. The insurance company’s net income was $942 million and operating income was $788 million. Property and casualty combined ratio was 87.7 per cent and P&C net premiums written were up 6.4 per cent (13.2 per cent in constant dollar volume) excluding agriculture. Unfavorable foreign currency movement, compared with the prior year, negatively impacted operating income by $29 million and reduced Global P&C net premiums written growth by seven percentage points.
Chairman and CEO Evan G. Greenberg said that the company had a good second quarter and had taken advantage of growth prospects in the US, Asia and Latin America. He said: “The highlight of the quarter was our announced agreement to acquire
Chubb. We are moving quickly and the senior leadership of both companies has formed teams that are already engaged in integration planning. The sense of excitement and energy from the leadership of both companies is inspiring.”
RGA takes on pension liabilities from UK insurer
The Reinsurance Group of America has taken on the more-than-$4 billion liability for pensions in the defined benefits scheme of insurer
AXA UK. The longevity swap involves around half of the liabilities of
AXA’s scheme, protecting 11,000 members. The Actuary reports that
AXA is the fifth UK insurer to do a similar deal and experts believe it will be a growing trend.
