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Low profits, high costs to drive consolidation among reinsurers


U.S.-based S&P Global Inc. said that low profits, high costs and excess capacity are likely to drive further mergers and acquisitions among reinsurers worldwide this year, Asia Insurance Review reported. The ratings agency said that reinsurers with a narrower business profile or limited geographic footprint are likely to consider merging their operations while the top 10 global reinsurers are unlikely to consolidate.

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