(Finance) – S&P Global Rings has a stable view on global reassuring sector which reflects the expectations of the rating agency on credit trend in the next 12 months, including the distribution of outlook on rating and existing and emerging sectoral risks. In its report, the rating agency underlines that favorable prices in the reinsurance, structural changes and an increase in investment yields have allowed the reinsurers to cover the Cost of capital In 2023 for the first time since 2019, with expectations of a similar performance in 2024-2025.
THE yields However, they could be reduced to the maximum levels, due to the downward pressure on the reassuring rates in the Property lines and the unfavorable development of the claims reserves in some casualty lines in the United States, underlined S & P Global Ratings.
Global insured losses deriving from catastrophes natural In 2024 they reached the 145 billion dollarsexceeding 100 billion for the fifth consecutive year. Due to the wide range of the fires of Los Angelessector estimates on insured losses vary between 20 and 40 billion dollars, with some assessments that reach up to 50 billion.
“The reinsurers will inevitably absorb a significant share of these costswhich will be expected to try mainly from personal lines rather than commercial ones, “explained the rating agency.
S&P is finally believed that i reassorors they started the year with a solid one position patrimonial And which will record positive results in 2025, despite the initial losses related to fires in California. These losses will be absorbed within the annual profits in the sector, however reducing the budget available for catastrophic events in the rest of 2025