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Guy Carpenter Press Briefing www.guycarp.com Peter Zaffino - - PowerPoint PPT Presentation
Guy Carpenter Press Briefing www.guycarp.com Peter Zaffino - - PowerPoint PPT Presentation
5 September 2009 Guy Carpenter Press Briefing www.guycarp.com Peter Zaffino President & CEO Capital Ideas in a Global Marketplace www.guycarp.com Richard Booth Vice Chairman Reinsurers withstand the financial crisis www.guycarp.com
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Richard Booth Vice Chairman
Reinsurers withstand the financial crisis
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Guy Carpenter World ROL Index Increases Were Contained by Large Capital Positions
Source: Guy Carpenter & Company, LLC
50 100 150 200 250 300 350 400 450 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Index *1990=100
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Regional Reinsurance Rate Changes Vary The Discounts of 2008 Went Untouched
- 15
- 10
- 5
5 10 15 Asia Europe United States World
2007 2008 2009
Source: Guy Carpenter & Company, LLC
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Chris Klein Global Head of Business Intelligence
Capital Comes Back to the Market
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(25) (20) (15) (10) (5)
- 5
10 15 20 6M08 6M09
USDbn
Non-Life Underwriting Result Life Underwriting Result Investment Income Realized Gains (Losses) Unrealized Gains (Losses) Interest Expense Other Taxes Net Income
Earnings Have Returned Investment Income Contributes Most of Gains
Source: Guy Carpenter & Company, LLC
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Earnings Increases Drive Capital Higher Shareholders’ Equity Grows Following 2008 Losses
70 75 80 85 90 95 100
SHF YE08 Net Income Shares Repurchased Dividends paid Unrealized Gains (Losses) Forex Movements Capital Increase Other SHF 6M09 USDbn Source: Guy Carpenter & Company, LLC
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Cash Is King Aggregate Cash Surges 316% at 1H2009
(15) (10) (5)
- 5
10
Operating Cash Flow Investing Cash Flow Financing Cash Flow Other Cash Flow Net Increase in Cash
USDbn
6M08 6M09
Source: Guy Carpenter & Company, LLC
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Russell 3000 P&C Insurance Index Book Value
Source: Guy Carpenter , Bloomberg Data
Slow awareness of the problem of legacy reserves/ deterioration
- f reserves
A long term trend?
Market falls Bull market 2Q capital rebound Major decline explained by credit crunch/ fall in asset values/ major catastrohes No marked decline after KRW because companies were able to recapitalise easily 30 40 50 60 70 80 90 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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David Priebe Chairman of Global Client Development
Capital Markets Mature, Strategic Use
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Cat Bonds Return after Silent Fourth Quarter Issuances Are Down, But Experienced Sponsors Committed
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
USD, Millions
1Q 2Q
Source : GC Securities Proprietary Database
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M&A Market Poised for Growth
Increased Activity Likely in Next 24 Months
Source : SNL Financial
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Henry Keeling CEO of International Operations
A Shift on the Continent
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Peter Zaffino President & CEO
- Recap
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