Most reinsurers have far more capital than a year ago, capacity is abundant, but problems lie ahead for the marketplace, one reinsurance brokerage predicted.

“Falling business production and rising expense ratios are concerns for both insurers and reinsurers,” said the New York-based Holborn brokerage in its report, “2010 Reinsurance Outlook: A Balanced Market.”

Holborn added that depressed levels of employment and economic activity are producing flat or declining exposure bases.

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