Regional reinsurance market outlook stable, according to Fitch

Asia Pacific

Ratings firm Fitch says the market outlook on the credit quality of the Asian reinsurance sector is stable, although several challenges lay ahead, including difficult market conditions and balancing shareholders’ returns. For the next 12 to 18 months, barring any unforeseen catastrophes, the profitability of Asian reinsurers, particularly the larger and more dominant players, is likely to improve, albeit moderately, with increased focus on proper risk management and underwriting discipline amid soft market conditions. However, smaller Asian players are likely to be margin-alised, given the market conditions and intense market competition, Fitch says in a new report, “Trends and Developments in Asian Reinsurance Markets”. Fitch adds that in the short to medium term the market shares of national reinsurers could start to be tested as the effect of market liberalisation takes hold.