2009 and Beyond
Looking forward, I am encouraged by several factors.
First, it seems likely that we will experience better markets in 2009 than we did last year. While growth in the reinsurance market will be hard to come by, I am hopeful that a better demand/supply balance will mean steady-to-rising prices, maintaining adequate levels of profitability. I also believe that returns in capital market assets should improve as a result of the dramatic price declines in virtually all asset classes. PartnerRe has the financial strength as well as the technical and managerial skills to participate fully in both markets.
Second, I believe strongly that the reinsurance industry has improved its risk evaluation, valuation and management skills to the point that there has been a permanent shift upward in its risk/return profile, certainly relative to other financial businesses. I also believe that the pain and trauma that we are feeling in the capital markets will lead eventually to more stable, more enduring stock and credit markets, where risk is understood and valued properly. You can be assured that PartnerRe will be there, with its human and financial capital intact, to take well priced risks and provide adequate returns to our shareholders. Next >