Despite numerous challenges facing the market, A.M. Best has affirmed the global reinsurance segment as stable. The company sited strong risk-adjusted capitalisation, prudent enterprise risk management practices and an improving pricing environment across a broadening spectrum of business classes as the reasons for the decision.
The company said because of these factors, the industry will be able to navigate and handle future obstacles that arise as a result of the uncertain and turbulent global economy.
“What [reinsurers] have demonstrated over the past several years is that their enterprise risk management processes have been working very very well and to a great deal have enabled them to maintain their financial strength through a very difficult operating climate,” A.M. Best Co. Vice President Bob DeRose said in an interview.
“It’s going to continue to be a challenging market environment. We are seeing some positive signs – we think that the pricing momentum is certainly gaining in the property arena and encouragingly we’re seeing a flattening in casualty pricing as well.”
