Not that you can tell from reinsurer stock prices lately, but catastrophe reinsurance rates must be really ramping up. Note that there have recently been two sidecars formed. Unless rates were high enough to offer 15+% returns on unlevered equity, I think its pretty unlikely that we would see this activity. AHL and its peers should be in fine fetttle going forwrad.
Some commentators think interest rates may go up significantly (and savings rates would follow I presume). That case would be very, very good for AHL and other insurers, right?? ... because their investment income would multiply. I haven't heard anyone mention this and I'm just wondering if I'm overlooking something.