...Sector Outlook Negative: Fitch Ratings' fundamental outlook for the reinsurance sector is negative. Premium prices are expected to fall further in 2016 while investment yields will remain close to historic lows. Soft market conditions will prevail, due to subdued reinsurance demand and fierce competition, especially where alternative capital and traditional reinsurers compete directly. Increased M&A activity will have a limited impact on abating supply-side competition. The sector outlook initially moved to negative in January 2014. Ratings Outlook Stable: Fitch maintains a stable rating outlook. This assumes a base case scenario that over the next 12-18 months a majority of reinsurers will be able to maintain overall adequate profitability and strong capitalisation despite softening prices, and that any declines in earnings will be within the ranges that current ratings can tolerate. We expect to affirm ratings for most reinsurers although a select group of smaller mono-line companies...
