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Member, Beacon International Group, Ltd.
Fitch Ratings Ltd. has said in a report that profitable results of reinsurers "continue to attract capital to the sector, leading to deteriorating reinsurance market conditions and recent accelerated industry consolidation," reported Artemis.bm.
The abundant capital has "created excess underwriting capacity in the reinsurance market, leading to price competition, falling reinsurance rates and the more recent M&A wave," said the rating agency. Market conditions are "unlikely to improve in the near term," said Fitch.