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Global Reinsurers’ Capital Levels Drop by 11% During H1, Hit by Declines in Markets

September 6, 2022

Global reinsurers’ capital levels dropped by 11% in the first half of 2022 to $647 billion, hurt by market declines, though higher interest rates helped their liability positions, broker Gallagher Re said on Tuesday.

Reinsurers, who insure the insurers, have suffered from recent drops in stock and bond markets, Gallagher Re said in a report.

Reported return-on-equity fell to 0.4% from 13.9% a year earlier. But while higher interest rates have hit reinsurers’ assets, they have made it easier for them to meet liabilities, as they need to set aside less money now to pay future claims.

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