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Hardening cyber market shows no signs of slowing: Berenberg
25th January 2022
Analysts at Berenberg have reported that hardening conditions in the cyber re/insurance market show no signs of slowing down, as demand for coverage continues to outstrip supply. As of Q3 2021, rates were up 204% cumulatively over 12 months and, currently, and Berenberg sees no evidence that this momentum will be ... Read the full article
Berenberg positive on London market in 2022
25th January 2022
Berenberg says that it remains positive about the London market, despite an elevated risk environment. Citing the risk factors of property reinsurance from climate change and claims inflation, casualty arising from ongoing social inflation, and cyber due to the increase in ransomware attacks, the bank said it remained positive despite investor ... Read the full article
Berenberg positive on reinsurance as underlying earnings power improves
19th January 2022
Investment bank Berenberg remains positive on the outlook for the reinsurance sector in light of improved underlying earnings power on the back of consecutive years of rate increases. With a continuation of market hardening at the January 1st, 2022, reinsurance renewals, albeit with "increasing fragmentation" between loss-hit and non-loss-hit lines, Berenberg ... Read the full article
Berenberg points investors to reinsurance market
19th January 2022
Banking firm Berenberg has posited that investors should be looking to the reinsurance market, especially considering the growth potential it holds arising from climate change. The argument, put forward in a recent newsletter, says that the current protection gap can spur innovation in product development. Berenberg put this in the context ... Read the full article
Reinsurance underperformance “ripe for reversal”: Berenberg
17th January 2022
Analysts at Berenberg consider a trend of underperformance among reinsurers as “ripe for reversal” following a strong January 2022 renewal period, which saw rate rises of more than 10% for natural catastrophe risks in many cases. Berenberg views the global reinsurance sector as having performed poorly in 2021, largely due to ... Read the full article
Renewals “bode well” for London Market profitability: Berenberg
14th January 2022
Analysts at Berenberg believe that the recent January reinsurance renewals “bode well” for continuous improvement in underlying profitability and earnings for the London Market in 2022. The investment bank considers the performance of the London Market to have been “lacklustre” in 2021. The drivers of the underperformance were similar to those for ... Read the full article
Sale of German life back book would be positive for Zurich: Berenberg
17th December 2021
The potential sale of global insurer Zurich's German life back book would be positive for the company as it would lower capital allocated to capital intensive traditional life business and potentially result in buybacks, reports Berenberg. Citing reports this morning from Versicherungsmonitor, analysts at Berenberg have discussed the potential sale of ... Read the full article
Unique hard market brings opportunities for major reinsurers: Berenberg
12th November 2021
Analysts at investment bank Berenberg have argued that the reinsurance market is currently very attractive as rates are continuing their upward trajectory, despite the fact that primary insurers remain well capitalised and there is seemingly ample capacity in the sector. The analysts noted that this is unique versus previous hard-market cycles ... Read the full article
Berenberg estimates Swiss Re’s cat losses will exceed 2021 budget
14th October 2021
Analysts at investment bank Berenberg have reduced its 2021 earnings per share (EPS) estimates by 20% as they expect catastrophe losses will exceed the cat budget again this year. This is due to the impact of hurricane Ida and the European floods. Currently, Swiss Re is the only European reinsurer to provide ... Read the full article
Reinsurers main beneficiaries of EC Solvency II review: Berenberg
23rd September 2021
Analysts at Berenberg believe that reinsurers will be the main beneficiaries of new proposal to review Solvency II rules made by the European Commission (EC). The review is largely in line with the initial proposal published by the EU regulator EIOPA in December 2020, and Berenberg notes that the framework is ... Read the full article
Further reinsurance rate increases needed through 2022: Berenberg
16th September 2021
Analysts at Berenberg believe that hardening market conditions will continue through into 2022, as reinsurers seek to earn returns above their cost of capital in the face of ultra-low interest rates, social and cost inflation as well as a prolonged period of above-average natural catastrophe losses. Berenberg’s key takeaway from its ... Read the full article
Allianz Structured Alpha loss likely between €3.5-6.8bn: Berenberg
18th August 2021
Analysts at Berenberg have estimated that the ongoing investigation by the US Department of Justice (DOJ) into the Structured Alpha Funds of Allianz Global Investors could entail a base-case loss of around €3.5 billion, with the potential for a worst-case loss of €6.8 billion. Allianz has already acknowledged that the investigation ... Read the full article
Berenberg considers Beazley a rare opportunity for profitable growth
26th July 2021
Beazley has made strides to convince the market that cyber insurance’s profitable growth can be restored, while also addressing some uncertainty surrounding a potential $50 million in additional COVID-19 losses, according on to a Berenberg report. Beazley confirmed in its H121 results that its $340 million COVID-19 loss estimate for 2020-21 ... Read the full article
Berenberg says European floods to cost reinsurers up to €3bn
20th July 2021
Analysts at Berenberg have warned that recent flooding in parts of Europe will drive reinsurance industry losses of between €2 billion and €3 billion, while the economic hit from the event is projected to be much higher. Last week’s flooding impacted many parts of Central and Western Europe, including Belgium, the ... Read the full article
COVID-19 claims costs tailing off sharply for US insurers, says Berenberg
16th April 2021
Initial results from US insurers suggest that COVID-19 claims costs are tailing off sharply rate rises in commercial lines, as well as in reinsurance, represent a very sharp and unrecognised margin improvement. Berenberg analysts sees this as a compound benefit to earnings growth, as it means that the earnings shortfall from ... Read the full article