Reinsurance sector maintains stable outlook: A.M. Best

A.M. Best Co. is maintaining a stable outlook in 2009 for the global reinsurance sector.“Through first half 2009, the majority of reinsurers posted favourable operating results, primarily due to moderate catastrophe activity and improved capital market conditions as the stock market rallied,” an AM Best release says. “This has led to a recovery of sorts in asset valuation. However, a broad recovery in rates has yet to occur, and the industry is bracing for the hurricane season. “Reinsurers have been able to regain some of the ground lost last year, when rates were still falling, but casualty rates are considered far from adequate,” it continues. Overall, property cat renewals on cat-exposed U.S. accounts yielded 15% increases, but around the world, increases generally were in the single digits, the ratings agency said.In the U.S./Bermuda market, considerable loss reserve releases helped drive 2008 underwriting results, shaving approximately seven points off the segment’s loss ratio.“Two years into the global financial crisis, global reinsurers’ performance to date could be counted as an achievement, given the state of the financial services industry and the economy.”