S&P: insurance rates stabilise; reinsurance risks continue

The rise in interest rates has led to stabilised ratings for insurers in the US, but risks for reinsurers continue to heighten.

According to Standard and Poor’s’ (S&P) latest report: Downside Pressure Eases Mid-2014 For Most Global Insurance Key Risks, ratings stability is more evident compared with a year ago, as eurozone sovereign outlooks resolve and greater capital and earnings certainty is expected.

"Nevertheless, reinsurance sector risks have heightened after a long period of stability, as we expect earlier soft market- pricing conditions to continue into the June/July renewal season," said credit analyst Michael Vine.