Bank of America (BoA) has said that reinsurers in Europe should post strong last-quarter numbers for 2021, saying that figures for that period may be higher than expected.
The bank said it believes that a strong Q4 2021 will contrast well with the same period of the year before, which was severely impacted by the fallout from the Covid-19 pandemic.
The bank said in a statement: “On a FY basis, headline combined operating ratios (COR) should improve YoY against easy comps, but remain materially above underlying CORs. We believe the industry is taking necessary underwriting action to address the market’s concerns over large losses (discussed above). Meanwhile, underlying CORs continue to show impressive improvements (down 0.5-2.5%pts YoY) as attractive pricing earns through.”