Negative outlook for reinsurance market

The substantial decrease in the tariffs since 2014, growing competition between reinsurers, excessive capacity and the absence of major losses are the factors highlighted by Fitch, Moody’s, Standard & Poor’s and AM Best to account for the negative outlooks they attribute to this industry.

The margins generated by reinsurers are expected to remain poor in 2016. Mergers and acquisitions moves observed in 2015 are poised to continue.