Global: Stable outlook for global non-life reinsurance
Source: Middle East Insurance Review | May 2024
AM Best is maintaining its outlook for the global nonlife reinsurance segment at Stable, owing primarily to the improved property reinsurance margins, driven by increased rates and attachment points in 2023, which are not anticipated to soften through the 2024 cycle; more robust investment income, driven primarily by higher new money yields on fixed-income instruments; reinsurance capital, estimated to have improved materially at year-end 2023, aided by strong underwriting results and partially countered by capital distributions to investors; and more orderly renewal cycles.
The ratings agency said that counterbalancing factors include the elevated catastrophic activity, stressing cedents’ capital positions; adverse reserve development for casualty business, especially for 2019 accident years and prior; and elevated geopolitical and economic uncertainties.
AM Best added that one factor that has both positive and negative implications is that no significant reinsurance startups have been funded to date. M