More positives than negatives in life reinsurance
Saturday, 08 05 2017, Category: Insurance and Reinsurance, Country: World
The outlook for the global life reinsurance sector is “promising” through 2019 as opportunities in the space outweigh a string of persistent market challenges, especially when compared with the property and casualty (P&C) space, according to Standard & Poor’s (S&P).
“Despite prevailing low interest rates, fierce competition in the sector’s bread-and-butter business of U.S. mortality, and the inherent volatility of life reinsurance, we consider that opportunities outweigh challenges in the sector,” said S&P Global Ratings analyst, Sebastian Dany.
The ratings agency predicts premium growth of roughly 3% per year through 2019, supported by solid profits and a return on equity (ROE) of a little more than 10% from 2017 through 2019.