M&A to continue for Bermuda reinsurers
Friday, 01 29 2016, Category: Insurance and Reinsurance, Country: World
Pressure on insurance and reinsurance companies to enter into mergers or acquisitions (M&A) is expected to continue, as pressure on earnings remains. However the consolidation trend in 2016 is expected to be slower than seen last year, according to Fitch Ratings.
“Fragile conditions” in the insurance and reinsurance market, as seen in the decline in pricing and weakening of terms and conditions, are continuing to pressure re/insurers in Bermuda, Fitch Ratings says in a new report.
“Organic growth options are limited and scale and diversification are driving a rapid pace of M&A activity for Bermuda insurers and Fitch expects industry consolidation to continue,” commented Brian Schneider, Senior Director at Fitch.