Aon launches April 2019 Reinsurance Market Outlook report
LONDON (15 April 2019)The Reinsurance Solutions business of Aon plc (NYSE: AON) has today published the April 2019 edition of its Reinsurance Market Outlook: Supply Weathering the Storm, which provides a comprehensive assessment of the key market dynamics of the recent renewals period. Metrics such as global reinsurer capital, alternative capital, and catastrophe losses offer insights on the potential direction of the global re/insurance industry and future renewals.
The report finds that despite a reduction of 3 percent in total global reinsurance capital from year end 2017 to 2018, reinsurers continue to offer coverage and terms to insurers that show that reinsurance capital is weathering the storm of the prior few years’ catastrophe events.
Reinsurers continue to provide accretive buying opportunities and necessary supply for insurers on the back of a nearly 30 percent capital increase since 2011 across traditional and non-traditional capital sources.
While traditional capital declined at year end 2018, the Aon Reinsurance Aggregate group of reinsurers showed positive signs as well. Alternative capital remained strong for the year and is expected to regain momentum as losses are developed and finalized; collateralized reinsurance specifically continued to make up more than half the total capacity provided.
Total catastrophe losses in 2017 and 2018 reached over USD240 billion, however 2019 is off to the slowest start to a year the industry has experienced since 2013 with first quarter total catastrophe losses 47 percent lower than the recent 15-year average and 26 percent below the median.
Looking forward to June and July renewals, our expectation is that the industry will continue to find adequate supply in the aggregate.
Read the report
For more information, please contact your local Aon broker or one of the contacts listed in the report.
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Notes to Editors
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Aon announced in May 2018 it will retire the business unit brands of Aon Benfield and Aon Risk Solutions, which follows the retirement of the Aon Hewitt business unit brand in 2017. This move was designed to increase the rate of innovation across the firm and make it easier for colleagues to work together to bring the best of Aon to clients. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
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