Reinsurer combined ratios, RoEs to deteriorate further in 2017
Tuesday, 10 18 2016, Category: Insurance and Reinsurance, Country: World
Further profit deterioration is expected for the reinsurance sector in the coming months as ample capacity and a return to more normalised loss activity exacerbates the effects of price softening, driving firms into specialty lines, according to Fitch Ratings.
The combined ratio for non-life reinsurers deteriorated to 93% in the first-half of 2016 from 88% in the previous year, and Fitch expects this trend to continue as the market moves towards the end of 2016 and into 2017.
“Fitch expects the reinsurance sector’s combined ratio to deteriorate further to 94.2% in 2016 and 99.2% in 2017, due to falling reinsurance prices, reduced reserve redundancies and catastrophe losses increasing to long-term historical averages,” said Fitch, in a recent reinsurance dashboard publication.