Reinsurers' profits to decline in 2016: Fitch

Fitch Ratings Inc. said that soft reinsurance market conditions are likely to continue throughout 2016, leading to a year-on-year decline in profits for reinsurers, Artemis.bm reports.

Reinsurer profitability will be affected by diminishing opportunities to deploy capacity, increasing pressure on investment returns and reinsurance underwriting results, Fitch said.

"Industry consolidation is likely to continue in 2016 as reinsurers look for scale to improve profitability," said a Fitch executive.

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