AM Best mortgage reinsurance charge set to hit RoEs

Tue, 03/28/2017 - 13:53
by The Insurance Insider

A new ratings methodology from AM Best for assessing mortgage reinsurance risk is expected to increase the capital that underwriters will need to hold against the business, which could reduce its returns on equity (RoE).

However, underwriting and broking sources surveyed by The Insurance Insider have suggested that the return profile of the fast-growing class of business will remain attractive for reinsurers relative to other lines, despite the hit to deal economics.

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