Reinsurers are facing pressure from competition and are likely to find it difficult to maintain strong profitability in the next two years, Standard & Poor's has warned.
Standard & Poor's has said it expects to change few reinsurers' ratings over the period.
Reinsurers face fierce competition as pricing declined and consolidation begins, the report, Defensive Plays Help Global Reinsurers To Maintain Resilience As Prices Continue To Soften, notes.
A statement from Standard & Poor's said: "Extremely strong capital adequacy, robust risk management, and portfolio steering, combined with these defensive measures, mean that we see less than half of our ratings on reinsurers as being overexposed to market pressures."
It added: In our view, competition is fierce, alternative capital continues to grow, pricing is declining, earnings are under pressure, and consolidation has begun.
"Global reinsurers are therefore searching their playbooks for options and strategies to cope with the myriad challenges.
"Standard & Poor's considers that the defensive actions global reinsurers have already taken have helped to prove the industry's resilience.
"Therefore, although we expect companies' competitive positions, earnings, and capital bases to remain under pressure over the next 12 months, we anticipate few positive or negative rating actions."