Moody's: Outlook for reinsurance sector remains negative
Thursday, 09 08 2016, Category: Insurance and Reinsurance, Country: World
The outlook for the global reinsurance sector remains negative, Moody's Investors Service says in a new report. The industry continues to be challenged by tepid demand for its products and an abundance of traditional and alternative capital.
Moody's industry outlooks reflect the agency's expectations for the fundamental business conditions in a given sector over the following 12 to 18 months.
"The negative outlook reflects the continuation of long-term challenges for the global reinsurance industry," says Moody's analyst, Sid Ghosh. "These include the ready availability of traditional capital and the steady growth of alternative capital, at a time when demand for reinsurance is broadly flat, leading to lower pricing and profitability, in conjunction with historically low investment yields."