Slower third-party capital growth in reinsurance is healthy
Friday, 02 10 2017, Category: Insurance and Reinsurance, Country: World
The slowdown in growth of third-party or ILS capital in reinsurance is “a healthy response” to the continued pressure faced in the global reinsurance market, according to rating agency A.M. Best.
The global reinsurance market continues to face its challenges, with both market and macro-economic forces at work and expected to “mold the landscape” over the near-term, according to A.M. Best.
Results remain reasonable, with catastrophe losses still manageable, reserve releases still favourable and capital management rife in the sector, but competition is expected to remain high and even though the bottom of the soft market is near, reinsurance margins are set to remain under pressure.