SINGAPORE, Sept 20 (Bernama-BUSINESS WIRE) — AM Best notes that reinsurance companies in South and Southeast Asia (S/SEA) posted an improved combined ratio in 2021, although underwriting performance remains pressured with a continued reliance on investments to achieve bottom-line profitability.
The new Best’s Market Segment Report, “Meeting Cost of Capital Elusive for South and Southeast Asian Reinsurers Despite Improved Underwriting Performance,” is part of AM Best’s month-long look at the global reinsurance industry ahead of Rendez-Vous de Septembre in Monte Carlo. According to the report, S/SEA reinsurers recorded an overall combined ratio of 108% in 2021, a five-percentage-point improvement from the recent high in 2019. Despite the improvement in technical performance, AM Best notes that overall return on equity declined to 3.4% in 2021 due to low investment yields amid a prolonged low interest rate environment in most S/SEA markets.
