Moody’s maintains its outlook for the reinsurance sector

Moody’s has announced its decision to maintain the outlook of the reinsurance business as stable. This position reflects the sound resistance of the market characterized in 2011 by major claims, with more funds than at the beginning of this same year. The agency has noted the improvement in terms of the underwriting and risk management policy, along with a recovery of demand thanks to the new legislative framework for some markets. The sector has, nonetheless reported a capital inflow estimated at 6 billion USD in 2011. An additional drawback : strategy distinctions between participants are decreasing. Downward forecasts for personal accident and life insurance premiums, due to falling interest rates, pushed reinsurance toward catastrophe risks.