As we come towards the end of 2016, investment in the UK real estate sector from various sources and the softening of insurance market rates continues at a pace.
Continuing low interest rates and even the emergence of negative interest rates in conjunction with unforeseen political events, is again causing a fluctuation in global stock markets. It is no surprise then that insurer’s investment returns on premium income continues to reduce.
Despite this, aggressive underwriting, expansion of existing underwriting teams and new entrants into the sector continue to drive pricing to lower levels and we expect this to continue unabated into 2017, with some carriers in the London market budgeting for a combined operating ratio of 100% or above.
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For further information, please contact Nigel Todd, Head of European Real Estate on +44 (0)20 7558 3549