In todays insurance environment, victory belongs to the bold. Margins are under pressure and competition is heating up; insurers can no longer afford tosit on businesses that are under-performing or sub-scale. By taking a portfolio approach to their businesses, insurers can start to assess the value and performance of their assets to make bold decisions on whether to grow (build) or go (exit) the business.

Time for bold decisions
Facing continued low interest rates, growing rate pressures in the property and casualty (P&C) sector and high levels of competition in both the P&C and Life sectors, it seems clear that margins will continue to face downward pressure for the near future.

Not surprisingly, most have already undertaken massive cost reduction initiatives in an attempt to shore up margins. And now, with little room left to cut, some are starting to take a more critical and strategic view of their business as a whole.

Our experience suggests that insurers need to take bold action and make difficult decisions now if they hope to create shareholder value and grow their business. The reality is that too many insurers are carrying businesses that are sub-scale, underperforming or simply distracting for management.

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