One of the themes coming out of this results season, as re/insurers announce their fourth-quarter and full-year 2021 earnings, is a growing confidence in the ability to expand margins and secure further growth, in a firming reinsurance marketplace.
Analysts are becoming increasingly positive with each report they publish and importantly the majority expect underlying margins will expand in the single digits to drive better profits over the longer-term.
Berenberg’s analyst team were especially positive recently, saying that margin expansion is expected even after accounting for increasing risk perception, inflationary factors and the run-rate of claims.
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