Conning Research: Conditions Create Potential Hard Market for Life Reinsurance in 2004

Sep 14, 2004, 01:00 ET from Conning Research & Consulting, Inc.

    HARTFORD, Conn., Sept. 14 /PRNewswire/ -- Primary life insurers may be
 facing a pricing and capacity crunch this year as they seek reinsurance in a
 market controlled by fewer players in 2004, according to a new study by
 Conning Research and Consulting, Inc.
     "Significant consolidation in life reinsurance over the past few years has
 limited the number of suppliers and contributed to capital constraints," said
 George McKeon, analyst at Conning Research.  "In addition, reinsurers have
 established themselves as a major facilitator of growth in the new term life
 business of primary insurers, and the life industry has become quite dependent
 on their support."
     The Conning Research study, "Life Reinsurance: Capacity and Other
 Challenges," identifies the professional reinsurers, looks at the structure of
 the reinsurance industry and its competitive landscape and financial results
 over the past few years, and compares it to the life industry as a whole.
     "Our study found that the professional reinsurance market has grown
 dramatically while the number of actual reinsurers with any significant share
 has shrunk," said Stephan Christiansen, director of research at Conning
 Research.  "In fact, between 1994 and 2003, new recurring reinsurance grew by
 almost 400%, while the number of life reinsurers with share greater than 2%
 dropped from 16 to 10."
     "Life Reinsurance: Capacity and other Challenges" is available for
 purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177
 or by visiting the company's Web site at
     About Conning Research & Consulting, Inc.
     The Conning name has represented excellence in independent insurance
 industry research for more than 90 years.  As a result of its wealth of
 experience and intimate knowledge of the insurance industry, Conning
 understands industry challenges and opportunities and can provide in-depth
 insights and analyses.  Conning provides both public and proprietary research
 as well as consulting services to the financial services industry.  Conning
 has offices in New York and Hartford.

SOURCE Conning Research & Consulting, Inc.