Reinsurers across the world likely to consolidate: Swiss Re

Swiss Re Ltd. expects reinsurers across the world to consolidate as the distinction between insurers and reinsurers gets increasingly blurred, Reuters reported. Frank Reichelt, an official at Swiss Re, said that insurers are increasingly expanding into the reinsurance business while reinsurers have started underwriting insurance to retain access to certain markets. Mr. Reichelt said that reinsurers currently do not earn their cost of capital due to increasing competition from new players such as hedge funds.

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