The re/insurers Arch, RenaissanceRe (RenRe), and SiriusPoint are well capitalised despite varying in financial performance, says a new note from Fitch Ratings.
Fitch Ratings said that the combined ratios for RenaissanceRe and SiriusPoint improved in 1H22 following elevated levels over the last several years from heightened catastrophe losses and pandemic claims in 2020.
Meanwhile, the negative financial performance and earnings outlook for SiriusPoint reflects continued underwriting losses in 2021.
Arch, Fitch Ratings said, had outperformed its peers, earning a score of ‘aa–’ with a Stable Outlook was revised from ‘a+’ with a Positive Outlook due to improvement in reported and underlying underwriting results over the past 12 months.
On all three companies, the agency said: “Fitch considers the company profiles of Arch to be “favorable” (aligns with Fitch’s ‘aa–’ credit factor score) and RenaissanceRe and SiriusPoint to be “moderate” (aligns with Fitch’s ‘a’ category credit factor score).
“This credit factor has a higher influence on the IFS ratings, given the importance that absolute and relative operating scale of capital and premiums has in determining the competitive market strength for these companies.”
It added: “Combined ratios for RenaissanceRe and SiriusPoint improved in 1H22 following elevated levels over the last several years from heightened catastrophe losses and pandemic claims in 2020. The negative financial performance and earnings outlook for SiriusPoint reflects continued underwriting losses in 2021.”
