What factors do you see currently shaping the market?
I think we’re only at the start of the consolidation phase that the market is going through at the moment.I don’t see how standalone reinsurers will be able to find a way forward in the current market, unless pricing dynamics substantially change. The position they’re in now is a result of the catastrophe pricing subsidy they’ve been using to support other lines – they’ve written a huge volume of long-tail business essentially at a loss, supported by profits from volatility business. Now we see pricing pressure on cat business, there’s a squeeze. There is no profit in the other business given the low interest rate environment, and they’re just being bled dry. I don’t see a point where the newer, more flexible and lower-cost means of bringing capacity to the market – the ILS funds – stop taking on an ever-larger share of profitable business.