Chris Klein, Guy Carpenter's Head of Business Intelligence, presents an illustration of the impact that higher investment returns can have on (re)insurer return on equity. A company with a six percent investment return is able to earn a 10 percent return on equity despite an unfavorable underwriting ratio. The situation is very different if the investment return drops by only 2 percentage points. Go to GC CapitalIdeas.com to see more materials on "Investment Gains:" http://www.gccapitalideas.com/tag/investment-gains/
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