Goldie predicts smoother seas ahead for reinsurance market
The reinsurance market could see the vertiginous market pricing cycles of the past replaced with a much smoother ride, Charles Goldie, chief executive officer of property & casualty at PartnerRe, told PCI Today.
“We’re seeing businesses correct,” Goldie said. “Third party capital has balanced out supply and demand which means that you actually have to run a business. You have to offer the products your clients want and be able to do it efficiently to meet tougher margin opportunities than we have seen in the past.
“I think we’ll see smoother markets in general than we’ve seen in the past.”
He noted that some businesses are exiting certain classes of business in Lloyd’s. According to Goldie this will probably lead to some degree of rate increases, but no severe correction.
Instead, he sees smoother markets with less amplitude in the pricing cycle, in both the upward and the downward phase. People have been predicting that for a number of years, now they will see it in practice, he said.
Looking at PartnerRe and its plans, Goldie identifies two areas of interest.
“One is that we have been building out our life reinsurance business,” he said. “We’ve built a good life reinsurance franchise in Europe and about a year to 18 months ago we acquired Aurigen, a Canadian life reinsurer. Over the next few years we’ll be rolling our life reinsurance platforms out, in both Canada and the US. That’s a real growth area for us in North America.
“On the non-life side we already have quite a strong franchise but we’re looking to strengthen that by growing it with our existing clients. We want to be a more significant player with our existing relationships,” he concluded.
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