... serve as meaningful providers of underwriting capacity in the U.S. and global (re)insurance markets, with a long history of operating profits and favorable returns on capital. Capital expansion and the arrival of new alternative market participants are fostering price competition, limited growth opportunities and future earnings pressure that in turn are promoting recent market consolidation. The ratings outlook is stable for reinsurers, but the reinsurance sector outlook remains negative. Results Strong: A review of 20 Class 4 Bermuda-domiciled (re)insurers reveals the market's aggregate operating success. Property/casualty (P/C) underwriting gains for this group in 2014 were $5.8 billion with a combined ratio of 82.2%, the lowest level in five years. Below-average catastrophe-related losses have influenced underwriting results in the last three years. Return on equity was 12.6% for the group in 2014 and averaged 11.2% for the last five...
