Little hope of a near-term bottoming for reinsurance cycle
Tuesday, 07 18 2017, Category: Insurance and Reinsurance, Country: World
A number of factors are conspiring to increase the pressure on reinsurance rates, it isn’t just the growth and competitiveness of alternative capital and the ILS fund market, leading analysts at Keefe, Bruyette & Woods to believe that there is “little hope of a near-term bottoming” out of the reinsurance market soft cycle.
Looking ahead to the second-quarter 2017 earnings season which will see the world’s major property & casualty insurance and reinsurance firms giving the analysts a fresh look at their performance, KBW’s team sees more reason for pessimism on rates than for positivity.
The June and July mid-year reinsurance renewals have clearly shown that the bottom of the market soft cycle remains just out of reach.