The hottest topic in the reinsurance world was on the agenda at the Property/Casualty Insurance Joint Industry Forum in January, where two reinsurance executives gave different perspectives on what the entrance of alternative capital means to the business.

Executive Summary

With references to inverted pyramids and two-by-fours, executives of reinsurance companies presented their views on the implications of the influx of alternative capital to the traditional reinsurance market at a recent conference.

Speaking on a panel of chief executives titled “A View from the Inside Looking Out,” Franklin “Tad” Montross, chair and CEO of General Re Corp., and Michael Sapnar, president and CEO of Transatlantic Holdings Inc., both said that the impact of capital from hedge funds, pension funds and other third-party capital providers is undeniable. Sapnar, however, saw more positives for the traditional reinsurance industry than did Montross.

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