The formation of this reinsurance ‘G10' gives an idea of the powerful presence on the market. Five European (Munich Re, Swiss Re, the Lloyd's, Scor and Hannover Re [1]), two American (General Re and Transatlantic Re), two Bermudan (XL Re and Partner Re) and one Asian (Toa Re).
In 2008, this group of ten, alone, controlled 55% of the reinsurance premiums worldwide.
The list of reinsurers reflects, by and large, the reality of a market traditionally dominated by the Europeans, who, with Munich Re, Swiss Re and the Lloyd's have for decades been in the pole position. Hannover Re and Scor, which have high hopes, are an additional force to this European trio.
The underrepresentation in this panel of the number one world economy shows the apathy of American investors for this long-term activity.
With two companies, the Bermudans stand for the “short-term” market of reinsurance. A market that is able to quickly meet demand and mobilize huge capacities. Bermudans provide the market with flexibility. Specialized in some niches, they are deemed as a useful supplement to European and American reinsurers.
In fact, the only drawback to notice in this “G10” is its lack of balance in the East. Toa Re, the four Japanese reinsurer, is the club's only Asian member company, whereas the Asia-Pacific area accounts for 11% of reinsurance premiums worldwide. China, Indonesia, Vietnam, Saudi Arabia and India, where GIC underwrites more reinsurance premiums than Toa Re, are the future reservoirs of insurance and reinsurance premiums.
Undoubtedly, on the next Monte Carlo, an expanding “G10” will stand for a new historic photo.
Links:
[1] https://www.atlas-mag.net/en/article/hannover-re