Historically low US hurricane season leaves reinsurers flush
Reinsurers will buy-back shares and pay special dividends after historically low US hurricane season loses and strong financial markets, the FT reports.
“There is going to be a lot more interest in capital returns on the basis that 2009 is likely to be a very profitable year,” said Thomas Dorner, analyst at Oriel Securities in London.
“There have been few large losses and investment returns have been spectacular.”
Not unaffected
But Jörg Schneider, Munich Re’s chief financial officer, said: “The reinsurance industry is in good shape, but you cannot say it has been unaffected by the losses on the capital markets.
“I look around the industry and I do not come to the conclusion that there is much redundant capital.”
The FT also ran along feature on what insurers might do with their spare capital.
