Risks in non-life reinsurance skewed to the downside
Friday, 01 22 2016, Category: Insurance and Reinsurance, Country: World
Risks to fundamentals in the non-life insurance and reinsurance sector are “skewed to the downside” according to analysts from Bernstein, but still the stock market has not yet priced in the fact that many companies are destined to deliver lower returns across the cycle in future.
In their latest report, analysts from Bernstein question whether investors are really aware of the downside faced by the non-life sector, particularly reinsurance, and whether the potential for re/insurers to face permanently lower returns has been priced into their shares or not.
The analysts, led by Josh Stirling, believe that value for investors is becoming harder to find in the shares of non-life insurers and reinsurers.