Thursday 30 May 2024
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KUALA LUMPUR (Oct 28): The Asia-Pacific reinsurance sector faces increasing downside risks amid global headwinds, said report S&P Global Ratings.

In a report titled “Asia-Pacific Reinsurance Sector Update: Volatility Ahead For Risks And Returns” released on Thursday (Oct 27), the rating agency highlighted that:

    Underinsurance, anticipated rate hikes, and diversification will lead to moderate growth prospects for premiums.
    Reinsurers' earnings face pressure from subdued underwriting results and declining investment margins.
    Healthy capital levels should remain intact amid market swings and the impact of fair value losses on shareholders' equity.
    Catastrophe risk remains lower for the region compared with global reinsurers; however, increased frequency should push up costs and demand for catastrophe protection.

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