...Sector Outlook Negative: Fitch Ratings' fundamental outlook for the reinsurance sector is negative, as intense market competition and sluggish cedent demand has resulted in a softening market for reinsurers. In addition, the onslaught of alternative capital, which Fitch views as enduring, leads us to expect that prices will continue to fall, and for terms and conditions to weaken into 2015 across a wider range of business lines. The agency initially moved to a negative global reinsurance sector outlook in January 2014. Rating Outlook Stable: Despite growing headwinds, 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 ranges that current ratings can tolerate. While ratings for most reinsurers are expected to be unchanged, there is heightened risk a select...
