Cost-of-capital to be a struggle in reinsurance
Thursday, 12 08 2016, Category: Insurance and Reinsurance, Country: World
Reinsurers are going to find it increasingly difficult to meet cost-of-capital requirements as the ongoing softening market cycle mounts pressure on firms’ profitability. With the current market environment expected to persist into 2017, some reinsurers will likely see profit levels fall below their cost-of-capital, according to Standard & Poor’s (S&P).
International financial services ratings agency, S&P, adds to the insurance and reinsurance sector analysts and observers that have highlighted the continued deterioration of profitability in the global reinsurance sector, emphasising the challenging times market participants are experiencing.