Insurance Market Briefing Europe

Grange St. Paul’s Hotel, London

2012 Insurance Market Briefing Europe

18 October 2012

Welcome
Dr Roger Sellek, Chief Executive Officer, A.M. Best EMEA & Asia-Pacific

2012 Insurance Market Briefing - Europe

18 October 2012

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Agenda
08:30 09:00 09:10 09:30 10:15 Registration Welcome EMEA Market Overview Key Note Speaker 10:35 11:20 12:05 12:45 13:00 European Outlook Reinsurance Panel Emerging Markets Open Q&A

2012 Insurance Market Briefing - Europe

18 October 2012

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EMEA Market Overview
Stefan Holzberger Managing Director, Analytics A.M. Best Europe – Rating Services Ltd

2012 Insurance Market Briefing - Europe

18 October 2012

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Western Europe
• Key Market Characteristics – Economic uncertainty and volatility – Heightened investment risk
36% 25% 14% 8% 2% AA+ 2% AA AA‐ A+ A A‐ BBB+ 9% 3% BBB 1% BBB‐

– Sound underwriting and reserving fundamentals – ERM advancements

Rating distribution as of 1 October, 2012
2012 Insurance Market Briefing - Europe 18 October 2012 5

Western Europe
• Review – Strong technical profits – Baseline capital strength improved – Stressed capital strength currently supports ratings Preview – Turbulent market conditions – Regulatory uncertainty – ERM focus
Rating Actions
15% Affirm Downgrade Upgrade

10% 75%

•

Outlook Summary
14% 86% Positive Negative Stable
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2012 Insurance Market Briefing - Europe

Emerging Markets: Non-MENA
• • CEE Key Characteristics – Hard hit by financial crisis – Exceptions: Poland, Czech Republic and Slovakia – Influence of Western insurers
35% 19% 12% 0% A A‐ BBB+ BBB BBB‐ BB+ BB Rating distribution as of 1 October, 2012 8% 15% 8% 3% BB‐ 0% B+
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CIS Key Characteristics – – – – Severe market contraction Banking sector crisis Consolidation Tax optimisation schemes

2012 Insurance Market Briefing - Europe

Emerging Markets: Non-MENA
•
CEE

CIS

Review – Good technical profitability – Increased