OREANDA-NEWS. Fitch Ratings has published a dashboard summarising the key issues faced by the global reinsurance sector during 2016. These include reinsurers' ability to manage change, M&A and the impact of alternative capital.

Fitch maintains a negative reinsurance sector outlook. The January renewal season demonstrated that market pricing for global property and casualty reinsurance has yet to reach a floor. With current pricing levels that only barely exceed some reinsurers' cost of capital, further material price drops, or disorderly competition in the market, could lead to negative rating action on P&C reinsurers. We expect the recent rise in M&A activity amongst traditional reinsurers to only have a limited offsetting effect on falling reinsurance prices.

Despite softening prices and diminishing investment returns, the majority of reinsurers will maintain overall adequate profitability and strong capitalisation. We expect any decline in earnings to be within the ranges that ratings can tolerate.

The 'Global Reinsurance Dashboard - 2016 Outlook' is available at www.fitchratings.com.