Standard & Poor's says the global reinsurance industry will remain stable for the rest of the year.
"There remains a possibility that some downgrades may occur during the remainder of 2005, but upgrades will be few and far between. Nevertheless, for the majority of the industry's constituents, the ratings will not change," the rating agency said.
The 2004 annual reports that have just been published showed "a respectable performance despite the US and Japanese storm activity of the third quarter, with an improvement in risk-based capitalization and more gentle declines in pricing than had been expected. However, these positive factors are offset by further adverse reserve development in 2004, the question of whether underwriting discipline can be maintained, and the impact of New York attorney general Eliot Spitzer's ongoing investigation into insurance industry practices," said S&P.
