Weakened reinsurers vulnerable to catastrophes in 2012, says Fitch

A report by rating agency Fitch found that several reinsurers will be significantly exposed to catastrophe events in 2012, after becoming financially weakened by events in 2011.

While the overall level of capitalisation of those reinsurers surveyed grew by 3.4 percent during 2011, 15 of the 24 reinsurers reported lower shareholders' equity.

However, Fitch also noted that the rating outlook for the global reinsurance sector remains stable, due to the industry's capital strength and projected underwriting and operating trends, and Fitch expects this to support reinsurers' current ratings over the next 12-24 months.

Despite the observed reduction in some reinsurers' capitalisation, the sector has generally been resilient to 2011 catastrophe losses.