M&A won’t stop the tide of reinsurance price declines
Monday, 07 20 2015, Category: Insurance and Reinsurance, Country: World
Rating agency Standard & Poor’s gave an update on how it views global reinsurance sector trends at an event in London recently, highlighting the continued growth of capital, ongoing price pressure and saying that M&A won’t reverse these trends.
Dennis Sugrue, Director and Sector Specialist for Reinsurance at S&P, explained that the rating agency still sees negative credit trends in the reinsurance market, largely created by continued pressure on supply and demand.
“We’re still seeing record levels of capital in the market. Alternative capital continues to flow into the market quite freely as well. At the same time we’re seeing a change in demand dynamics,” commented Sugrue.