The global reinsurance industry is likely to see more mergers and the next 12 to 24 months are unlikely to see a return to the profitability of the last five years, a report from Standard & Poors' has warned.
Reinsurers will need to have greater scale and diversification to remain relevant, the report, Reinsurance shark tank - only the strong will survive, warned.
The report also said that it is unlikely in the next 12-24 months that pricing will improve enough to turn the market for all reinsurers, nor is it likely competition will subside.
The report notes that boards of directors and management teams are placing renewed attention on growth amid demands for greater scale from cedents.
Taoufik Gharib, credit analyst at Standard & Poors' said: "We expect reinsurance M&A momentum to continue for the rest of 2015 and into 2016 as the remaining small and midsize reinsurers race to find consolidation partners."