- "Fierce competition, over-capacity and low returns continue to put pressure on the industry," says Moody's, reinforcing its negative outlook on the global reinsurer sector (first changed to negative in June).
- There are positive developments though, particularly a slowing in price declines. Moody's previously believed a 15-20% drop in cat prices next year a "distinct possibility," but says such a severe scenario has become less likely.
- One reason for the slowing price decline, says Moody's, is non-traditional competitors like insurance linked securities (ILS) are having a tough year and have less scope to cut pricing.
- Among the reinsurers: ACE, XL, PRE, RE, RNR, AHL, ENH. AXS, ACGL, RGA, MRH, UNM, OTCPK:SSREY, GLRE, TPRE.