Welcome to the annual Pricewaterhouse Coopers’ Insurance Facts and Figures which shows 2007 as the turning point for results in the insurance sector.
A few highlights from the past year:
Whilst the 2007 results remain robust, there was a clear upward trend in loss ratios for the general insurance sector
The life insurance sector continued to show strong results in 2007 albeit the rate of profit growth started to slow
The health insurance sector saw two major insurers demutualise to provide greater access to capital
Overall, all sectors of the insurance industry remain strongly capitalised.
These trends will be more pronounced during 2008 as the full impact of increasing claims activity, softening investment markets, and volatility in pricing flow through the industry. Whilst this will mean a more challenging operating environment, the underlying fundamentals of the industry remain strong.