KUALA LUMPUR, Sept 4 (Bernama) -- Global credit rating agency, AM Best in its latest research on the global reinsurance industry highlights the segment’s strong technical results amid an ongoing shift to the International Financial Reporting Standards (IFRS) 17 reporting standard.
AM Best has published its annual review of the global reinsurance industry, an analysis highlighting companies’ favourable results and financial reporting shifts, as reinsurance industry leaders prepare to gather in Monte Carlo for the annual Rendez-Vous de Septembre.
In a statement, AM Best said the report is available in one comprehensive volume, featuring exclusive extra content, the credit rating agency’s in-depth analysis of key segments and regional markets spotlights a global momentum that was the main driver of its first-ever positive outlook on the reinsurance segment in June 2024.
Given the comprehensive de-risking measures and a realignment of interests between reinsurers and primary carriers, albeit with a lack of new company formations, the credit rating agency expects the hard pricing conditions to last longer than in previous cycles.
At the same time, IFRS 17, which became effective on Jan 1, 2023, has been adopted by many reinsurers, and this move has created challenges for users of the new financial standard and has also prompted AM Best to modify its listing of the largest reinsurers, depending on the reporting standard used.
The report explores factors affecting different reinsurance market participants, with specific regional observations including improved underwriting results among reinsurers in Sub-Saharan Africa; and certain markets experiencing significant levels of economic deterioration, challenging fiscal manoeuvrability despite resilience among Middle East and North Africa (MENA)-region reinsurers.
In addition, the report also examines the catastrophes in the previous year, including Hurricane Otis, highlight the need for additional capacity in the Latin America region’s reinsurance market; the Asia Pacific reinsurance composite achieving significant growth in 2023, owing mostly to China Re’s international expansion.
Factors such as better pricing and terms and conditions, along with a strong, global reach paved the way for a solid year by Europe’s “Big Four” reinsurers; and the data and analysis behind AM Best’s latest list of the 50 largest reinsurance groups, were among the observations highlighted in the report.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial