3 Tips for Reinsurers to ride out the Inflation Cycle
Inflation a challenging environment for (re)insurers, which need to calculate how they should build elevated costs into their pricing models
Berkshire Hathaway
Berkshire Hathaway – American multinational conglomerate holding company headquartered in Omaha, United States.
Berkshire Hathaway has averaged an annual growth in book value of 19% to its shareholders since 1965 (compared to 9.7% from the S&P 500 with dividends included for the same period), while employing large amounts of capital, and minimal debt.
The company is known for its control and leadership by Warren Buffett, who serves as chairman and chief executive, and Charlie Munger, the company’s vice chairman. In the early part of his career at Berkshire, Buffett focused on long-term investments in publicly traded companies, but more recently he has more frequently bought whole companies. Berkshire now owns a diverse range of businesses including confectionery, retail, railroads, home furnishings, encyclopedias, manufacturers of vacuum cleaners, jewelry sales, manufacture and distribution of uniforms, and several regional electric and gas utilities.
Life reinsurers based in Bermuda have recorded increased activity as annuity sales rise in the U.S. and recent regulatory changes
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts