A series of transactions that appear to benefit sister company AmTrust at its own expense raises questions about whose interest the firm is being run for.
New inflation data showed pricing continued to weaken in July as companies pivot to growth. With flat severity, margin pressures are building. Frequency remains the wildcard.
Headline results at auto insurers remain strong. Even so, as the market shifts to a more pro-growth stance, the risk of overshooting on price competition always increases.
We have written extensively our conviction 2019 would prove an inflection point. However, it is now clear even we underestimated the extent management would wield the axe.
It’s tough out there for total return reinsurers. Our view is that the current valuations of total return reinsurers are unsustainable, and that the group are vulnerable to M&A and activism.
