Reinsurers face a persistent and dispiriting problem with the investment markets. Almost regardless of individual performance, they are rated lower than comparable companies in different industries.
The markets seem to be fundamentally pessimistic about the industry's ability to deliver returns above the cost of capital - a "bear case" that no large reinsurer, and only a handful of small ones, seems able to refute. There are ways to escape the bears - but they require reinsurers to understand what drives investor pessimism, and to make major changes to their business models and communication strategies. In our report, Reinsurance - Escaping from the Bears, we look at four possible ways for reinsurers to innovate their business.
