Alternative capital continues to test reinsurance market
Friday, 04 24 2015, Category: Insurance and Reinsurance, Country: World
Global investment firm Bernstein has advised investors to be cautious of reinsurance, as the sector continues to fill with alternative sources of capital, and remains rife with competition, including from insurance-linked securities.
In a new report, titled “U.S. Insurance: Who’s Afraid Of Negative Pricing? With Solid Fundamentals, We’d Buy The Dip On A Noisy Quarter,” investment and portfolio management firm Bernstein discusses persistent headwinds facing the reinsurance market.
“We do not expect any relief on pricing for some time to come. With such fundamental long term headwinds, we see stocks in this sector swimming upstream,” notes the report.