Reinsurers and investors are not capitalising on the potential attractiveness of the sector as a source of uncorrelated cash flows, leading to an undervaluation of the industry says a new report issued at the annual Monte Carlo Rendezvous.
Ratings agency Standard & Poor’s says the threat of a huge leap in the liability for pollution spills is the biggest threat to the appetite for reinsurers to offer capacity to the marine and energy market.
A senior ratings analyst has said that the possibility remains that pure marine and energy underwriters could well become a thing of the past as capital replenishment fears and the drive for diversity continues.
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