Narrowing returns threaten reinsurance sector: S&P

The gap between reinsurers' cost of capital and returns is
tightening, Standard & Poor's (S&P) has warned.
Credit analyst David Masters predicted in a report published
yesterday ahead of the Monte Carlo Rendez-Vous, that even
if prior-year reserve releases stay favourable, the top 20
reinsurers will barely be able to cover the cost of capital. This
is expected to "marginally" increase in 2017 and 2018,
S&P said.
The sector's return on capital was 8.6 percent in 2016, and
S&P said