Reinsurers’ combined ratio nearing 100% in 2017
Thursday, 12 01 2016, Category: Insurance and Reinsurance, Country: World
According to Fitch ratings, reinsurers’ performance has been declining over the first half of 2016, with the increase in natural catastrophes being the main cause behind this decline.
Reinsurers’ combined ratio by June 30, 2016 amounted to 93% compared to 88% a year earlier. The rating agency believes that this deterioration is poised to continue in the second half with a combined ratio of 94.2%.
This trend is likely to linger on in 2017 as a 99.2% combined ratio is expected for that period. This change in the results is accounted for by the expected decrease in reinsurance rates, a lower level of reserves and the rise in the impact of natural catastrophes.
Source: Atlas Magazine