A.M. BestTV at Rendez-Vous: Reinsurers Race Against Whirlwind of Changes

By a News Reporter-Staff News Editor at Investment Weekly News -- In this A.M.BestTV episode from the 2018 Les Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, reinsurers and related professionals gather amid an evolving landscape and challenging market conditions. Click on http://www.ambest.com/v.asp?v=rvs1918 to view the entire program.

Attendees say companies need to adapt or they will vanish, while pricing pressure, alternative capacity, market consolidation and capital management also are capturing industry attention.

"I think that the leading topic is going to be what is in store for pricing terms and conditions," said Robert DeRose, senior director, A.M. Best. "People are very concerned about who their partner is today and whether their partner will be around for the long term. Therefore, mergers and acquisitions are on everyone's mind in terms of when they transact business, since they want to make sure that they are dealing with a partner that has the relevance and the longevity in the market to be a partner over the long term."

"One theme is certainly going to be the convergence between alternative capacity and traditional reinsurance companies," said Stefan Holzberger, chief rating officer, A.M. Best. "We' have seen some pretty big mergers and acquisitions.......What we are seeing there is this partnership between alternative capital and traditional reinsurance providers: building scale, lowering the cost of capital and earning fee income from utilizing alternative capacity where they are not necessarily on the hook from a capitalization or risk-bearing standpoint."

Keywords for this news article include: A.M. Best, Investing, United States, Mergers and Acquisitions.