Reinsurer profitability approaching tipping point: S&P

Ongoing soft market conditions and stagnant investment yields
are likely to drive reinsurers' profitability below their cost
of capital, according to rating agency Standard & Poor's
(S&P).
In a report released today, S&P warned that the sector was
approaching a tipping point that could see profitability fall below
the cost of capital until underwriting or investment cycles
turn.
It predicted return on capital in the sector would drop to
between 5.5 percent and 7.5 percent this year f