Declining profitability for reinsurers in the MENA region

According to A.M. Best, reinsurers’ profitability in the MENA region (Middle East and North Africa) deteriorated in 2016. The market’s loss ratio is well above global mean value due to the increased frequency of medium and large-scale losses, especially in the energy, property and trade sectors.

Poor interest rates and currency depreciation for countries of the Gulf Cooperation Council are also behind this declining profitability.

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