September 2014 Bermuda:Re/insurance+ILS 15


The chiefs have their say


Bermuda Re/insurance+ILS


Charles Cooper, president and chief underwriting officer at XL Re


Jerome Faure, CEO, global reinsurance at Endurance


Mike Morrison, partner at KPMG Advisory, Bermuda


Jeremy Pinchin, CEO of Hiscox Re


Charlie Thresh, managing director, KPMG, Bermuda


Matt Wilken, president of Argo Re


We asked leading members of the


Bermuda market their thoughts on three key questions challenging the re/insurance industry.


What strategies are re/insurers pursuing to pep up their ROEs in the current environment?


CHARLES COOPER: It’s a bit about math. You can work either on the numerator or on the denominator. Every reinsurer right now is working on the denominator. There is too much capital in the business and everyone is looking to manage that capital. Primarily they are doing this through share repurchases. XL repurchased $175 million in each of Q1 and Q2 this year and other reinsurers are pursuing active capital management. The ROE problem is significant because the E has become so big. One way to manage that is to reduce the E.


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