Reinsurance prices may not be sustainable
Saturday, 05 05 2018, Category: Insurance and Reinsurance, Country: World
Having endured the heavy losses of 2017, reinsurers should enjoy an improvement in profits in 2018 as rates improve and cat losses return to normal levels, according to Fitch Ratings.
The rating agency noted that the sector outlook for global reinsurance remains negative given intense market competition, the influx of alternative capital that continues to pressure pricing and persistently low investment yields that strain reinsurer profitability.
However, Fitch's ratings for the global reinsurance sector remain stable, as strong capitalization of most rated entities should allow Fitch to affirm the majority of its ratings over the next 12 to 18 months.
Source: Intelligent Insurer