Hurricane Harvey weighs on global reinsurance profitability

According to Moody's, losses caused by hurricane Harvey are expected to seriously strain the profitability of the reinsurance market in 2017. The rating agency expects a decrease in annual profits, despite the performance reported in the second quarter of 2017.

During the aforementioned period, market profits have gone up by 1.4% while the combined ratio of non life reinsurance improved by 3.1 points, from 95.7% to 92.6%.

Moody's also added that the tariff degradation reported over the past five years is poised to continue at the next renewal. Capacity abundance and stiff competition will continue to affect this business.

This analysis had been published on September 4, 2017 before Irma, second more devastating hurricane.

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