Press Release - SEPTEMBER 13, 2017
A.M. BestTV at Rendez-Vous: Reinsurance Outlook Remains Negative, but With Possible Upsides, Say A.M. Best Leading Analysts
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 13, 2017
“The negative outlook is really an indication of where A.M. Best believes ratings are going to migrate over the next 12 to 36 months,” said Holzberger. “The negative outlook that A.M. Best has had on the reinsurance sector for a number of years, is being driven by the issues that are prevalent here at Rendez-Vous: the low-rate environment, expanding terms and conditions, reducing reserve releases and the abundance of capital in the industry. These factors are really putting a strain on opportunities, especially growth opportunities, as well as the whole pricing dynamic.”
Carter spoke about how the top 10 reinsurers have consolidated their positions in the reinsurance market.
“These reinsurers have weathered scale, diversification, capital and performance better than the smaller players. If anything, these companies have expanded their positions and entrenchment in many markets. To have come through pretty tough market conditions over the last six to eight years and maintained strong capital positions and good earnings really takes them away from that negative outlook.”
Concerning Hurricane Irma, Holzberger and Carter agree that if it had taken a different path, and became a $100 billion or $150 billion insured loss event, the industry might have seen a rationalization in terms of the pricing dynamic in the market and some hardening across the market for reinsurance.
For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit http://www.ambest.tv/rvs17 .
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