Reinsurer margins to erode further
Monday, 02 29 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurers continue to note reduced returns across the majority of new business with competition levels intensifying, says A.M. Best. Emphasising the need for practicing disciplined reinsurance underwriting to mitigate margin erosion.
Rating agency A.M. Best expects continued pressures for reinsurers moving further into 2016 as challenges mount across all segments of the U.S. property/casualty industry.
Persistent rate decreases in the global reinsurance and commercial insurance industry have challenged re/insurers profitability in recent times, increasingly compressing underwriting margins below acceptable returns.