Moody's Investors Service's near-term rating outlook for the global reinsurance industry remains negative, reflecting a number of challenges facing reinsurers despite the broad-based market upturn that began in 2001. These challenges include adverse loss development arising from reinsurers' underwriting practices during the 1990s soft market, particularly for the 1998 through 2001 accident years, as well as lower investment income and growing asbestos liabilities.
These trends are likely to constrain companies' organic capital development in the near term despite the positive effects of impr...
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