LONDON (Reuters) - Moody's Ratings upgraded its outlook on global reinsurers to positive from stable owing to reinsurers' higher prices and more restrictive policies, along with healthy investment income, the ratings agency said in a statement on Tuesday.

Reinsurers insure the insurers and have raised their rates and excluded some business in recent years in response to sharp losses from the COVID-19 pandemic, wars and natural catastrophes.

Higher interest rates have also boosted reinsurers' investment income.

"We expect property reinsurance pricing to remain favourable," said Brandan Holmes, senior credit officer at Moody's.

"Solid balance sheets will help reinsurers withstand potentially high catastrophe losses."

Reinsurance buyers expect property reinsurance price hikes to slow next year, however, following years of "significant" rate increases, according to a Moody's annual survey of global property and casualty reinsurers.

Reinsurers meet for their annual conference in Monte Carlo next week, to hammer out deals with insurers for the key Jan 1 renewal date.

S&P Global said on Tuesday it retained its stable outlook for global reinsurers. The global reinsurance industry earned its cost of capital in 2023 for the first time in four years, and the ratings agency said it expected the industry to do so again in 2024 and 2025.