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Moody's remains negative on reinsurers

09 September 2010

The credit outlook on the reinsurance industry remains negative and fundamentals for the industry are likely to weaken further than improve in the next 12 to 18 months, according to a global reinsurance outlook from rating agency Moody’s.

The credit outlook on the reinsurance industry remains negative and fundamentals for the industry are likely to weaken further than improve in the next 12 to 18 months, according to a global reinsurance outlook from rating agency Moody’s.

Moody's expects that companies will continue to be challenged by soft pricing, overcapacity, and low investment yields. However, Moody's notes that this view is already reflected in the ratings and outlooks assigned to individual firms.

In 2009 reinsurers' book value increased as a result of the recovery in the capital markets and low catastrophe losses, and balance sheets have remained strong despite much higher losses this year related to events such as the Chilean earthquake and the Deepwater Horizon oil rig disaster.

During 2009 the aggregate book value of the top 40 global reinsurers grew by...


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For more catastrophe reports, data and news, click through to the RMS/Reactions Catastrophe Centre.

Poll

Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
44%
$4bn-$5bn
22%
$5bn-$6bn
11%
$6bn-$7bn
22%
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0%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield