The global reinsurance sector will fail to earn its cost of capital in 2020 due to the COVID-19 pandemic, according to a forecast by Fitch Ratings.
Fitch projected that financial performance would be impacted by mortality claims and losses from event cancellation, business interruption, credit and surety insurance, and financial-market disruption due to the economic impact of COVID-19-related lockdown measures. The pandemic follows three years of heightened natural catastrophe losses and rising US casualty claims, which impacted returns in 2017-2019, Fitch said.
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