Moody's upgrades outlook on global reinsurers to positive from stable (updated)

Moodys

03/09/2024 12:39

(Adds detail, background in paragraphs 2-7, comment from S&P
Global in paragraph 8)
    By Carolyn Cohn
       LONDON, Sept 3 (Reuters) - Moody's Ratings upgraded its
outlook on global reinsurers to positive from stable owing to
reinsurers' higher prices and more restrictive policies, along
with healthy investment income, the ratings agency said in a
statement on Tuesday. 
    Reinsurers insure the insurers and have raised their rates
and excluded some business in recent years in response to sharp
losses from the COVID-19 pandemic, wars and natural
catastrophes. 
    Higher interest rates have also boosted reinsurers'
investment income.
    "We expect property reinsurance pricing to remain
favourable," said Brandan Holmes, senior credit officer at
Moody’s.
    "Solid balance sheets will help reinsurers withstand
potentially high catastrophe losses."
        Reinsurance buyers expect property reinsurance price
hikes to slow next year, however, following years of
"significant" rate increases, according to a Moody's annual
survey of global property and casualty reinsurers.
    Reinsurers meet for their annual conference in Monte Carlo
next week, to hammer out deals with insurers for the key Jan 1
renewal date.
    S&P Global said on Tuesday it retained its stable outlook
for global reinsurers. The global reinsurance industry earned
its cost of capital in 2023 for the first time in four years,
and the ratings agency said it expected the industry to do so
again in 2024 and 2025.

 (Reporting by Carolyn Cohn
Editing by David Goodman and Christina Fincher)
 ((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))