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Re/insurers leaning heavily into fixed income investments: Goldman Sachs
4th April 2023
Amid increasing global economic volatility, and with a US recession seemingly on the horizon, re/insurers are leaning heavily into fixed income investments and are seeking to increase duration and credit risk, according to analysts at Goldman Sachs. Goldman Sachs Asset Management’s latest global insurance investment survey shows that more than half ... Read the full article
Hard market to increase volatility for primary insurers: Goldman Sachs
13th February 2023
Analysts at Goldman Sachs have warned that hardening reinsurance market conditions are causing more volatility in the primary market, as carriers are forced to retain more risk on their balance sheets. At the same time, however, analysts observed that reinsurance pricing increases are not yet translating to revenue and top line ... Read the full article
Re/insurers’ capital supply will struggle to meet climate demands: Goldman Sachs
7th February 2023
Analysts at Goldman Sachs have warned that the current supply of capital in the property insurance and reinsurance markets will likely struggle to meet the increased demand for coverage that is likely to develop as climate change drive catastrophe losses ever higher. Referencing Swiss Re data, Goldman Sachs notes that rising ... Read the full article
Underwriters to retain more risk amid hardening market: Goldman Sachs
25th January 2023
Analysts at Goldman Sachs expect underwriters to hold more risk on their own balance sheets going forward, rather than assuming the large increases to reinsurance and retrocession coverage that materialised at the recent January renewals. Reflecting on trends coming out of 1/1, Goldman Sachs believes that reinsurance is entering a truly ... Read the full article
Reinsurance capacity strained with rates to increase 50% for US cat: Goldman Sachs
19th December 2022
A new note from Goldman Sachs around P&C insurance reports that reinsurance capacity is strained with rates potentially up by over 50% for US cat. The note arises from conversations the financial giant had with property and casualty insurers, that the firm said were ‘most optimistic’ with the current environment favourable ... Read the full article
Claims inflation to cause short term impact and drive higher pricing: Goldman Sachs
2nd December 2022
Claims inflation will cause a short term impact in the re/insurance sector, but will drive higher prices, causing a positive impact in 2023 and 2024, according to Goldman Sachs analysts. While there has been much positive commentary on pricing, claims inflation remains a focus, analysts have pointed out, mainly regarding whether ... Read the full article
Industry returns driven by hard market: Goldman Sachs
23rd November 2022
A new note from Goldman Sachs says that attractive returns within the industry are being driven by a hard market. The firm said that reinsurers have historically been a low-beta and defensive sector that outperformed in terms of uncertainty. This has continued, it said, as the hard market pricing has started ... Read the full article
Goldman Sachs forecasts 35% property cat rate-on-line increase
17th November 2022
Goldman Sachs has said that it is estimating a +35% increase in global property catastrophe reinsurance rates-on-line (RoL). This would, said the firm, be the strongest RoL increase since the early 1990s (+65% in 1993), which it said would surpass the +26% averaged in 2001-2002 post-9/11. The financial giant gave several reasons ... Read the full article
Pricing above claims inflation, industry profitability should recover in 2023: Goldman Sachs
16th November 2022
As price momentum vs claims inflation remains the key focus at 9M22 results, Goldman Sachs analysts have suggested that pricing is currently above claims inflation, which should lead to profitability recovery of the insurance industry in 2023. In the case of commercial P&C Lines, price momentum has continued to address claims ... Read the full article
Stonybrook hires Miller from Goldman Sachs as SVP
14th November 2022
Stonybrook Capital & Risk Management has announced the appointment of Kevin Miller Jr. as Senior Vice President (SVP). He joins Stonybrook from Goldman Sachs, where he served as SVP for over two years. Before that, Miller spent over five ... Read the full article
Commercial pricing to carry on showing modest deceleration: Goldman Sachs
18th October 2022
According to a recent Goldman Sachs report, commercial pricing is expected to continue to show modest deceleration in the quarter. This is mainly due to higher investment yields and improved underwriting over the past several years which have modestly outweigh ongoing inflationary pressures. Analysts noted that in the first two months ... Read the full article
Goldman Sachs estimates $45bn of P&C industry insured losses from Hurricane Ian
6th October 2022
According to a report from Goldman Sachs, Hurricane Ian was the most notable catastrophe in the quarter, with the firm estimating $45 billion of P&C industry-insured losses, excluding those from the NFIP program. Other industry loss estimates vary, but remain high, with Verisk assuming re/insurance industry loss between $42bn-$57bn. CoreLogic ... Read the full article
Strong demand for reinsurance amid high inflation: Goldman Sachs
13th September 2022
With the 2022 annual briefings having started in Monte Carlo, analysts at Goldman Sachs have highlighted a strong demand for reinsurance amid higher inflation, while capital supply is flat to down. It expects strong rate increases will continue in the January 2023 renewals, with companies taking a more cautious view. Goldman ... Read the full article
P&C commercial lines hard cycle to support underwriting profit: Goldman Sachs
1st September 2022
Goldman Sachs analysts expect a hard market cycle in P&C commercial lines to continue in 2022-23, with the retail cycle to inflect as inflation is priced in. In the short term, analysts expect the commercial cycle will continue to outperform, but in the medium term the retail cycle is expected to ... Read the full article
Interest rate hikes beneficial to reinsurers: Goldman Sachs
30th August 2022
With interest rates having already risen across the UK and Europe and further hikes expected in the coming months, analysts at Goldman Sachs have predicted that higher interest rates will prove beneficial to reinsurance companies in the long term. Although interest rate growth could lead to lower investment income due to ... Read the full article