ICMIF Supporting Member AM Best has maintained its market segment outlook for the global reinsurance segment at stable, citing the presence of highly uncertain market conditions with positive and negative factors offsetting one another.

Chief among the negative drivers is the heightened natural catastrophe activity that continues to test investors’ risk tolerance levels, according to a new Best’s Market Segment Report, titled, “Market Segment Outlook: Global Reinsurance.” This is being compounded by geo-political and economic uncertainty, in addition to growing claims costs. Despite improving pricing trends and tighter terms and conditions, new traditional capital is cautious and remains on the sidelines. Similar constraints are being seen on the insurance-linked securities side of the market, particularly for retrocession capacity.