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The Actuary The magazine of the Institute & Faculty of Actuaries

Q2 sees reinsurer capital recovery following catastrophe losses

Aon Benfield Analytics estimates that total global reinsurer capital reached $445bn at June 30, 2011. This figure is a broad measure of the combined traditional and non-traditional reinsurance capital available worldwide.

The 28 leading reinsurers reported capital totalling $242.4bn between the beginning of Q1 and the end of Q2, which is a decline of $4.2bn (1.7%) since the end of 2010. The main contributors to this change in capital position were $1.2bn of net income, $0.8bn of new capital and $2.4bn of foreign exchange gains, offset by $7.1bn of dividend payments and $2.5bn of share buybacks.

Mike Van Slooten, international head of Aon Benfield Analytics' international market analysis team, said: "Despite the elevated level of catastrophe losses over the past 18 months, financial strength ratings have remained broadly unchanged, reflecting continued robust capital positions."

The full report can be gound at http://thoughtleadership.aonbenfield.com/ThoughtLeadership/Documents/201109_ab_market_analysis_aba_1H2011.pdf