Reinsurers’ 2017 combined ratios to nudge 100%
Tuesday, 10 11 2016, Category: Insurance and Reinsurance, Country: World
Reinsurers’ underwriting performance declined in the first half of 2016 due to higher natural catastrophe losses – and the negative trend is set to continue into 2017, according to Fitch Ratings.
Overall non-life reinsurers’ underwriting results deteriorated in the first half of 2016 to a 93 percent combined ratio from 88 percent in the same period a year ago as the majority of companies posted higher natural catastrophe losses.
But Fitch expects the reinsurance sector’s combined ratio to deteriorate further to 94.2 percent in 2016 and 99.2 percent in 2017, due to falling reinsurance prices, reduced reserve redundancies and catastrophe losses increasing to long-term historical averages.
Source: Intelligent Insurer