Tag Archives: Reinsurance
An A.M. Best analysis of the global reinsurance industry under the rating agency’s updated Best’s Credit Rating Methodology (BCRM) and its new building block approach revealed that approximately two-thirds of the rated population have the strongest category of balance sheet strength, and that no companies in the entire population fell below the strong category.
Economic Pressures on African Reinsurance Markets Remain, but Growth Potential Lures Overseas Players
The African reinsurance market has experienced material growth over the past decade. However, the operating environment remains challenging, with significant headwinds of currency volatility and inflationary strains amid global softening market conditions.
In the past year, the continent’s reinsurers have been affected by slower growth, reflecting challenging economic conditions and subsequently suppressed demand for oil and gas. In addition to reduced cover for large value risks, there has been a higher frequency of attritional and large claims, as well as increased cost bases together with the need to strengthen reserves given inflationary effects.