Reinsurance 'shark tank' means mergers ahead - Standard & Poor's

clock

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."

Further reading:

Swiss Re net income up 11%

International disability income shortfall is €750bn - Swiss Re

Budget 2015: ‘Disappointing' lack of detail for reinsurance

 

More on Employee Benefits

Unum UK proposes Statutory Sick Pay overhaul

Unum UK proposes Statutory Sick Pay overhaul

Changes aim to boost SSP contributions from 28% of earnings to 63%

Hemma Visavadia
clock 19 May 2022 • 2 min read
Employees worried about taking sick days amid workplace mistrust

Employees worried about taking sick days amid workplace mistrust

According to MetLife UK research

Hemma Visavadia
clock 13 May 2022 • 2 min read
Employers to reform benefits strategies around D&I, ESG: Howden

Employers to reform benefits strategies around D&I, ESG: Howden

More employers to act on improving benefit schemes

Hemma Visavadia
clock 12 May 2022 • 2 min read

Highlights

First episode of The COVER Review goes live!

First episode of The COVER Review goes live!

New monthly programme

John Brazier
clock 21 April 2022 • 1 min read
The Rising Stars of Protection: Adrian Benjamin

The Rising Stars of Protection: Adrian Benjamin

"Getting into the insurance industry is very difficult, I had to fight my way to get in"

Hemma Visavadia
clock 20 April 2022 • 6 min read
Where protection meets sustainability

Where protection meets sustainability

"Being a sustainable business means more than just meeting climate targets"

Hannah Godfrey
clock 19 April 2022 • 7 min read