Fitch remains negative on reinsurance
Tuesday, 12 12 2017, Category: Insurance and Reinsurance, Country: World
In light of catastrophe losses experienced in the second-half of 2017, Fitch Ratings has maintained its negative outlook for the reinsurance sector, while the majority of reinsurer rating outlooks remain stable.
As the January 1st, 2018 renewals fast approach, global reinsurance companies are expecting rate increases to improve the profitability of the industry after years of falling rates and deteriorating margins, driven by the high level of cat losses in the third-quarter, and the recent California wildfires.
“Fitch’s fundamental outlook for the reinsurance sector remains negative. Intense market competition and the endurance of alternative capital have depressed prices in recent years. Low investment yields, which Fitch expects to persist, put further strain on reinsurer profitability,” said the ratings agency, in its 2018 Global Reinsurance Outlook.