10 January 2013News

AM Best: reinsurance outlook stable

Despite troubling global economic conditions, AM Best’s latest Global Reinsurance Outlook paints a stable picture for the reinsurance sector in 2013 and argues that it is well-positioned to ride out the ongoing crisis.

Citing “strong risk-adjusted capitalisation, judicious enterprise risk management practices and a relatively stable pricing environment across a broadening spectrum of business classes”, the rating agency said that industry strengths should help sustain company’s financial positions over the long-term.

The report added that: “a disciplined underwriting posture has enabled reinsurers to produce reasonable profits from underwriting activities, helping to mitigate the continuing deterioration in investment earnings.” AM Best said that it predicts reasonable organic growth in 2013, but added that active capital management strategies would likely be pursued by the industry.