MONTE CARLO—A.M. Best Co. is bucking the trend of rating agencies’ negative outlooks for reinsurers with a stable forecast for that marketplace.
“We have a stable outlook on global, nonlife property/casualty reinsurers,” said John Andre, group vp, property and casualty ratings, at Oldwick, N.J.-based A.M. Best. Most reinsurer ratings are expected to be affirmed at their next review, he said Sept. 6 at a presentation at the Rendez-Vous de Septembre reinsurance gathering in Monte Carlo.
Best’s outlook contrasts with those released recently by Moody’s Investor Services and Fitch Ratings. Both those rating agencies issued negative outlooks on the reinsurance market.
Mr. Andre said reinsurer capital remains sound and underwriting discipline is being emphasized by reinsurers. “We don’t expect underwriting discipline to fade,” he said.
Reinsurers are expected to show their strongest growth in emerging markets, according to Miles Trotter, general manager, analytics, at A.M. Best in Europe. “We’ve heard an awful lot from reinsurers about developing business in emerging markets,” he said during the Rendez-Vous. Recovery from the financial crisis is happening more quickly in emerging markets, he said, and those countries are attractive to reinsurers partly because of stronger growth in gross domestic product than developed nations.