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Insurance ratings agency AM Best said this week it expected “hard” – or high – pricing conditions to last longer. | Photo: Wikipedia
Ratings agency Fitch has changed the outlook on global reinsurers to neutral from improving, saying it expected the sector to remain strong but that prices had probably passed their peak, Fitch analyst Manuel Arrive said on Thursday.
“We expect balance sheet strength and financial performance to remain resilient in 2025, but further improvement is less likely,” Arrive told a media briefing.
There was a “moderate softening” in property catastrophe reinsurance rates at the key Jan 1 renewal date for reinsurers, Arrive said, but he added that risks from large natural catastrophes such as hurricanes remained.
“If there is a high magnitude event, rates could harden again,” he noted.
Reinsurers, which insure the insurers, have raised their rates in recent years in response to losses from the Covid-19 pandemic, wars and natural catastrophes. But industry sources have mixed views on whether prices will continue to rise.
Insurance ratings agency AM Best said this week it expected “hard” – or high – pricing conditions to last longer than in previous cycles.
S&P Global, meanwhile, retained its stable outlook for reinsurers, while Moody’s raised its outlook to positive from stable.
Reinsurers meet for their annual conference in Monte Carlo next week to hammer out January pricing deals with insurers.
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First Published: Sep 05 2024 | 6:40 PM IST
