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(From Reinsurance)
Byline: John Sanders.
Some $240bn in capital has left the reinsurance industry in the last few years. Much of that has gone in underwriting losses or reserve strengthening, but the biggest cause of the disappearing billions has been the global fall in stock market values. On the plus side, some $30bn has come into the industry, most of it through Bermuda, some via Lloyd's and other markets.
Of greatest concern to cedants is the impact that the capital outflow has had on ratings. As of early September, just over half the world's top 30 reinsurers had been downgraded by ratings agencies since the beginning of 2002. And the news ...