Guarantee insurers may review reinsurance

Recent events may lead primary financial guarantee companies to question the worth of buying reinsurance from the monoline financial guarantee reinsurers, according to rating agency Moody’s. In a new note on the sector, Moody’s says it is becoming more cautious about the outlook for monoline financial guarantee reinsurers reflecting increasing uncertainty about the amount of benefit that primary insurers will recognize when ceding exposure to the reinsurers.