(by Ameli Berksman)
According to the recent research, global reinsurance rates are too weak to uphold profitability.
Despite a lot of reinsurance companies made underwriting profits over the past two years, rates do not increase, making profitability weaker.
In the U.S. reinsurance losses are connected with the recent hurricane losses, largest within 40 years.
The impact of liability reserve increases has turned into the fact that several reinsurers being downgraded to below an A- financial-strength rating level.