Reinsurers have achieved reasonable returns on capital and compensated investors while increasing capacity despite catastrophes that have inflicted $190 billion in insured losses, according to Swiss Re’s Sigma, as quoted in “The Capital Challenge: Reinsurance Capacity Overshadows Market,” a special report from A.M. Best. Balance sheets have remained robus, though insured losses have dragged on earnings, according to the report.

“The challenge of managing loss accumulation from global catastrophes was evident in 2011, and since 2008 reinsurers have faced numerous hurdles due to a weakened global economy: deteriorating investment returns; more volatile investments; suppressed growth opportunities; increased client retentions and competitive pricing,” A.M. Best said.

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