Capital Adequacy Is Key Strength of Reinsurers in Difficult Market
Tuesday, 02 23 2016, Category: Insurance and Reinsurance, Country: World
Strength of capital and good enterprise risk management are two of the main reasons the global reinsurance industry will be able to maintain a stable outlook during 2016 from Standard & Poor’s Ratings Services, despite the many competitive pressures it faces, according to Taoufik Gharib, S&P director.
“We have a stable outlook but we’re cautious about the outlook going forward. In other words, the industry continues to be under pressure when it comes to earnings,” said Gharib, who discussed the outlook for the global reinsurance industry in a recent S&P webcast.
Despite the many competitive pressures buffeting the industry, Gharib said, capital adequacy is a key strength of the reinsurance sector. “The industry has benefited from strong earnings over the last few years,” driven by reserve releases and benign catastrophe losses.
Source: Insurance Journal