AM BEST PUBLISHES ANNUAL REVIEW OF GLOBAL REINSURANCE INDUSTRY; ANALYSIS HIGHLIGHTS COMPANIES' FAVORABLE RESULTS, FINANCIAL REPORTING SHIFTS
OLDWICK, N.J., Sept 4 (Bernama-BUSINESS WIRE) -- As reinsurance industry leaders prepare to gather in Monte Carlo for the annual Rendez-Vous de Septembre, AM Best’s latest research on the global industry highlights the segment’s strong technical results amid an ongoing shift to the IFRS 17 reporting standard that has altered the performance analysis of these companies.
Now available in one comprehensive volume, featuring exclusive extra content, AM Best’s in-depth analysis of key segments and regional markets spotlights a global momentum that was the main driver of AM Best’s first-ever positive outlook on the reinsurance segment in June 2024. Given the comprehensive de-risking measures and a realignment of interests between reinsurers and primary carriers, albeit with a lack of new company formations, AM Best expects the hard pricing conditions to last longer than in previous cycles. At the same time, IFRS 17, which became effective on Jan. 1, 2023, has been adopted by many reinsurers, and this move has created challenges for users of the new financial standard as they adjust to its provisions. This change also has prompted AM Best to modify its listing of the largest reinsurers, depending on the reporting standard used.
The report explores factors affecting different reinsurance market participants. Specific regional observations include:
Improved underwriting results among reinsurers in Sub-Saharan Africa, even if the capacity offered by Africa-domiciled reinsurers remains insufficient to meet market demand.
Despite resilience among MENA-region reinsurers, certain markets are experiencing significant levels of economic deterioration, challenging fiscal maneuverability.
Catastrophes in the previous year, including Hurricane Otis, highlight the need for additional capacity in the Latin America region’s reinsurance markets.
The Asia-Pacific reinsurance composite achieved significant growth in 2023, owing mostly to China Re’s international expansion.
Better pricing and terms and conditions, along with a strong, global reach paved the way for a solid year by Europe’s “Big Four” reinsurers.
The data and analysis behind AM Best’s latest list of the 50 largest reinsurance groups.
To access the full copy of this comprehensive Best’s Market Segment Report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=346298.
For all of AM Best’s research on the global reinsurance industry, please visit Best’s Research.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source : AM Best
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