Bermuda reinsurers' net income for the year's first half rose 14 percent to a record $4.5 billion, according to a new report put out by London-based Benfield Group Ltd. today.
The Benfield Bermuda Quarterly group carriers' combined ratio improved slightly to come in at 89.2 as 2005 catastrophe reserve additions were more than offset by releases from other classes.
Total gross premium written for the group declined 4 percent to $31 billion.
“There was a wide range of growth rates as some companies retrenched while others expanded to exploit the rapid increase in catastrophe prices in the run-up to U.S. midyear renewal,” the report said.
Substantial price increases were reported for energy and U.S. peak zones. But outside the U.S., the market was generally described as flat. “Irrespective of what the 2006 hurricane season might bring, most companies predicted a continuing hard market into 2007 due to sustained capacity constraints,” the report said.
Quanta and PXRE saw falls of gross premium written of 57 percent and 48 percent, respectively, as downgrades effectively stopped them from writing business.
Platinum, XL and Max Re also reported notable premium reductions.
Catastrophe-oriented underwriters reported the highest growth rates in the first half with Renaissance Re reporting a 31 percent rise in gross premium written, which the carrier said was driven primarily by improved pricing rather than increased exposure levels.
IPC reported the second highest growth at 22 percent from price increases and new business.
Increased property-catastrophe and marine business accounted for much of the 20 percent increase at Arch, while most of Axis growth came from professional lines insurance.
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