Reinsurers have delivered returns "not seen in over a decade", but conditions in 2008 are more challenging
Standard & Poor's Ratings Services has published its mid-year 2008 outlook on the North American Reinsurance industry and states that it is maintaining its stable outlook on the global reinsurance sector.
The article titled, "Midyear 2008 North American Reinsurance Outlook: Can U.S. And Bermuda Reinsurers Continue To Thrive In Less Certain Times?," states that US and Bermuda reinsurers had another record-breaking operating year in 2007.
"Banking on two straight years of strong profitability, these markets have delivered operating returns to their shareholders not seen in over a decade," said Standard & Poor's credit analyst Laline Carvalho.
"As we move further into 2008, however, concerns over softening market conditions across most lines of business and geographic regions are bringing into question global reinsurers' ability to maintain strong, sustainable earnings."