Reinsurer earnings deterioration obscured, pressure continues
Thursday, 12 10 2015, Category: Insurance and Reinsurance, Country: World
The deterioration of earnings in the reinsurance sector is being “obscured” by the twin forces of positive reserve releases and the benign catastrophe loss environment, effectively enabling reinsurers results to look more positive than they are, according to ratings agency Moody’s.
In its latest reinsurance update Moody’s explains that the pressures witnessed in the reinsurance market in 2015 are set to continue into 2016, with excess capital and reduced demand likely to signal continued softening of rates.
“An abundance of reinsurance capacity and decrease in demand from primary insurers has created sustained pressure on reinsurance pricing and erosion of terms and conditions”, explained Simon Harris, Moody’s Managing Director.