Reinsurance market outlook for 2022

Fitch Rating has upgraded the market from "stable" to "improving." According to the agency, reinsurers are well capitalized and taking advantage of organic growth opportunities. Moreover, with the expected increase in rates, their underwriting performance as well as their operating environment is poised to improve in 2022.

Moody's has revised its outlook from negative to stable. Moody's notes that the global economic recovery is expected to boost revenues for reinsurers that are already well capitalized. The demand for reinsurance should also increase with the rise in natural catastrophe claims.

AM Best maintains its outlook for the sector at stable. The challenges faced by reinsurers would be offset by a number of positive factors such as improved earnings and market conditions. Increased rates should offset growing uncertainties related to rising loss experience and abundant capital.