Fitch Ratings announced that it shifted its outlook on the global reinsurance sector to neutral yesterday but the downward shift came with an expectation of continued profitability—and a forecasted combined ratio around 90 in 2025.
The revision—from a prior outlook of “improving”—reflects Fitch’s view that the pricing cycle is likely past its peak.
Related: Global Non-Life Reinsurer’s Profits to Peak in 2024: Fitch Rating’s Midyear Analysis
“Currently, the sector is in very good shape with very strong capitalization and record financial performance by historical standards,” said Manuel Arrivé, Fitch Ratings’ director and head of EMEA Reinsurance. “We expect both balance sheets and profitability