| AM Best‘s continued stable outlook on the global reinsurance industry is reflective of negative market forces, predominantly driven by the COVID-19 pandemic, social inflation and previous years’ property catastrophe events, being offset by hardening rates and a re-assessment of third-party capital investor appetite.
In its new Best’s Market Segment Report, “Global Reinsurers Maintain Equilibrium Through COVID-19 Turbulence,” AM Best notes that while the ultimate impact of the pandemic remains to be seen, some companies appear better positioned than others to adapt to these market conditions. Expectations vary greatly on both sides of the balance sheet, and depend largely on factors such as each company’s product mix- with event cancellation, non-U.S. business interruption, directors and officers, workers’ compensation and financial lines most likely to be affected – and differing levels of concentration in equity holdings and any extant relief from hedging strategies. |
Global Reinsurers Maintain Equilibrium Through COVID-19 Turbulence
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