Rating agency Moody’s has shifted its outlook on the global reinsurance sector to positive citing the improvement in risk/return dynamics in the market and saying it anticipates continued strong profitability if major losses remain absent, while also saying property reinsurance rates are expected to remain elevated.
At the same time, the rating agency highlights the deepening partnership with alternative capital in the reinsurance industry, which despite growing has not become significantly more competitive with reinsurers.
Moody’s explained, “Higher prices and tighter policy terms, supported by favorable risk/return dynamics and healthy investment income support our positive outlook for the global reinsurance sector.
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