Standard & Poor's [4] downgrades the reinsurance market outlook from stable to negative.
The rating agency predicts the shareholders' equity of some reinsurers may be significantly impacted by COVID-19.
In addition, and according to the agency, the property and casualty (P&C) classes of business are expected to be more affected by the pandemic than life insurance. Business interruption guarantees would significantly weigh down the bill of major reinsurers, mainly those operating in the United States.
The postponement of the Olympic Games is likely to cause a loss of 250 million USD for Swiss Re and 500 million USD for Munich Re. S&P is expecting a combined ratio between 101 and 105% in 2020.
According to the agency, the current situation may lead to a further downward revision of ratings.
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