Friday 26 January 2018

BEST'S BRIEFING: TYPHOON HATO SHOWS MACAU'S INSURANCE AND REINSURANCE MODELS TO BE ROBUST

HONG KONG, Jan 26 (Bernama-BUSINESS WIRE) -- The Macau non-life insurance industry ability to withstand 2017’s Typhoon Hato (Hato) shows that despite the market’s small size, it remains a healthy one, with well-capitalized companies that have strong earning capabilities to help withstand losses, according to a new A.M. Best briefing.
 
The new Best’s Briefing, titled “Typhoon Hato Shows Macau’s (Re)insurance Models to be Robust,” states that Macau’s insurance regulator takes a conservative approach by requiring a minimum solvency margin for non-life business based on gross premiums written. Under these high capital requirements, local insurance companies tend to focus on the bottom line in order to deliver their shareholders an expected return-on-equity (ROE). As a result, the earning capabilities of the top three non-life insurers in Macau, which represent 70% of the market share, are considered strong, with five-year ROEs ranging from 9% to 24%.

http://mrem.bernama.com/viewsm.php?idm=31021

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