Reinsurers Increase Capital Amid Market Challenges

Reinsurers and alternative capital providers are boosting capital investment in response to the challenging market conditions post a successful 2023. Fluctuating risk-adjusted rates are primarily affecting top tiers of reinsurance programs. Berenberg highlights Munich Re and Swiss Re as promising (re)insurers poised for capital returns through buybacks and appealing cash yields, while the excess & surplus market, with its proficiency in managing intricate risks, is projected to expand, benefiting firms like Beazley, Conduit Re, and Lancashire.