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Member, Beacon International Group, Ltd.
Moody's Investors Service Inc. said that reinsurers in the Gulf Cooperation Council are experiencing softening renewal rates amid overcapacity and limited natural catastrophe losses, reported Middle East Insurance Review.
"The additional pressure of softening rates on underwriting margins is credit negative for reinsurers, since it comes at a time when the companies' investment returns will likely remain low," a Moody's official said.
Moody's, however, said that the region remains a growth target despite the softening rates.