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TEXT-S&P on strength of the global reinsurance sector
June 5, 2012 / 6:22 PM / 5 years ago

TEXT-S&P on strength of the global reinsurance sector

 (The following statement was released by the rating agency)	
 June 5 - The strengths of the reinsurance sector enabled it to emerge from
2011 with its capital base largely intact, according to a report released today
by Standard & Poor's Ratings Services, titled "Sector Trends For Global Non-Life
Reinsurers: Despite 2011 Catastrophe Losses, The Reinsurance Sector Remains On A
Strong Footing."	
In general, we believe that global non-life reinsurers hold excess capital 	
relative to their rating levels. However, the amount of excess capital 	
diminished somewhat during 2011 because of the record level of catastrophe 	
losses and management returning capital to shareholders through dividends and 	
repurchased shares.	
During the past 10 years, more frequent and more severe catastrophes have 	
challenged the reinsurance sector, as have the global financial crisis and 	
economic downturn. However, reinsurers' strong capitalization, strong 	
enterprise risk management capabilities, and a conservative investment 	
strategy have ensured that 2011 was an earnings event rather than a capital 	
event. These strengths continue to allow some players in the market to take 	
advantage of current conditions. "We do not expect a bias, either positive or 	
negative, in the direction of any rating actions that we may take during the 	
coming year for the reinsurance sector," said Standard & Poor's credit analyst 	
Douglass Ostermiller.	
The report is available to subscribers of RatingsDirect on the Global Credit 	
Portal at If you are not a RatingsDirect 	
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 	
or sending an e-mail to Ratings 	
information can also be found on Standard & Poor's public Web site by using 	
the Ratings search box located in the left column at 	
Members of the media may request a copy of this report by contacting the media 	
representative provided.	
 (New York Ratings Team)	

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