June 2004/5

After two years of downward pressure on the sector, European reinsurers are at last seeing stabilisation in their financial strength, according to rating agency AM Best.

Equity analysts at Morgan Stanley have questioned the more bullish comments relating to AIG’s performance, including its ability to harvest earnings from p/c reserves and its earnings leverage to improved economic conditions and rising interest rates.

UK insurance group Royal & Sun Alliance (RSA) has confirmed that it is negotiating the sale of its life business.