AM Best Report: Hard Reinsurance Market Drives Demand for Surplus Notes
March 20, 2025
In a market characterized by high interest rates and a tougher reinsurance environment, U.S. property/casualty and health insurers are increasingly leveraging surplus notes. A recent report from AM Best highlights this trend. The report suggests these companies are seeking ways to improve their financial flexibility.
“Operating losses since 2022 have created a need for insurers to bolster capital cushions,” explained Jason…