Copying and distributing are prohibited without permission of the publisher
Facing a failure to reload after a catastrophe
15 June 2009
The capital markets cannot be relied on to recapitalise firms as a result of the financial crisis. The upshot is that a big hurricane loss this year could have dire consequences for the industry.
Read more:
[john charman]
[marty becker]
[scott carmilani]
While it is never a good time for a catastrophe to hit, this year would be the one of the worst possible times. A big question hangs over this year’s hurricane season, which started June 1. Would insurers and reinsurers be able to recapitalise following a big event?
“That’s the million dollar question,” said John Charman, president and chief executive officer of Bermudian insurer and reinsurer Axis Capital, at a Standard & Poor’s insurance conference in June. “I think the industry is in a transitional year and I actually believe it’s quite vulnerable.”
He added: “We are at the lowest point in a pretty aggressive pricing cycle for the industry. If you couple that with what has taken place on the asset side of our balance sheets through the financial turmoil of the last 12 months then you can see the industry is sitting there on some...
To continue reading this article please subscribe or take a free trial to Reactions.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
