Pressures on reinsurers from a number of directions could force boards to review their strategic priorities, resulting in more M&A activity and potentially a burgeoning run-off market.
A combination of what remains a stubbornly stagnant economy and increasing competition on peak perils from alternative capacity is making growth increasingly hard to come by for some reinsurers, especially those previously reliant on the property-catastrophe business now so fiercely sought after.
This search for growth will force some companies’ senior executives to consider their strategic options and this, in turn, could start to drive a combination of mergers and acquisitions (M&A) and even run-off, claim some market commentators.
Challenges around how to achieve growth are increasingly on the minds of top executives in the reinsurance industry, said Aon Benfield co-CEO Dominic Christian at a press conference in Monte Carlo, arguing that this has become a far greater priority for executives in recent years.
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Intelligent Insurer, M&A, Insurance, Run-off, Charles Goldie, Dominic Christian, Ingrid Carlou