Reinsurers’ reserves strong, but releases “unsustainable”
Friday, 08 04 2017, Category: Insurance and Reinsurance, Country: World
Reserving will continue to be a key debate in the reinsurance space as current release levels are “unsustainable” although reinsurers still remain mostly comfortably reserved, according to Morgan Stanley equity analysts.
Analysts commented in the firm’s latest market research report that most reinsurers are comfortably reserved, although with varying buffer levels – they show stable reserve releases to support earnings and offset soft market conditions.
However, if firms maintain current reserve practices, in the near-long term future, balance sheet stability will be jeopardised.