Beazley warns on reinsurance

THE TRADITIONAL reinsurance business will be permanently changed by the ongoing influx of new money, the boss of Lloyd’s insurer Beazley said yesterday.

“Pension funds are investing in catastrophe bonds, a potential new form of reinsurance. It’s getter cheaper to invest so it’s not going away,” Andrew Horton said.

He was speaking as Beazley unveiled a 28 per cent fall in first half profits to $72m (£47m) due to weak investment returns.