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(From Reinsurance)
Byline: Steve Umpelby.
The impact of the equity market correction during the last few years on the (re)insurance sector has been well documented. In many ways the decline in equities was a blessing in disguise for a number of companies that had maintained strong underwriting businesses, while those that had not were at least shown a possible path to redemption.
Volatile equity markets highlighted in the clearest possible terms the level of systematic risk associated with holding equities. Investors had tended to ignore this area of the market, focusing on stock-specific risk or the risk that a particular stock will perform ...