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Reinsures will continue to face challenges as overcapacity remains in the reinsurance market, reported Artemis.bm.
"Despite indications that reinsurance premium rate decline is slowing, there continues to be over-supply of capacity within the industry and no sign of hardening conditions," said the rating agency. A.M. Best said this in a rating affirmation for Munich Reinsurance Co. "Significant challenges lie ahead for Munich Re over the medium term in the form of low interest rates and soft reinsurance market conditions," said A.M. Best.