According to a report released last week by Gallagher Research Centre, return on equity in the global reinsurance market has exceeded the industry’s weighted average cost of capital for the first time in a decade.
ROE jumped from 6.3% to 11.2% - which the report largely attributed to improved underwriting and stronger investment income, as well as a smaller shareholder equity figure which also helps boost the ROE equation.
Though capital dedicated to the insurance market decreased year over year by 12% down to $638 billion dollars, mostly as a result of the reduced value of underlying investments, the report nonetheless represents a quite strong performance for the market.
You can find that report here.
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