Always there, but rarely seen or heard. Re-insurers offer a vital safety net for primary insurers. But who can re-insurers, the companies that insure the insurers, turn to when the hurricanes blow? After all, the financial storm has hit big names such as Swiss Re, Munich Re and Hannover Rein much the same way as it has their clients.

Although underwriting performance has been resilient, investment income has been hammered and markdowns have eroded capital. Raising fresh equity would send a distress signal and might shake primary insurers’ confidence. So re-insurers have rebuilt their capital buffers by increasing premiums and axing unprofitable business. Mostly, they have hunkered down and ridden out the storm. Given these circumstances, PartnerRe’s decision to bid $2bn for Paris Re makes it look like the exception.