Reinsurance News
A.M. Best news
News featuring rating agency A.M. Best, including the latest reports, rating actions and analysis from the company, as well as news on A.M. Best’s analysis of the reinsurance sector.
ESG integration entails both social and financial benefits: A.M. Best
31st August 2018
In recent years, investors and shareholders have been increasingly judging re/insurers on their incorporation of a range of Environmental, Social and Governance (ESG) factors, but consideration of these risks and opportunities could also result in significant financial benefits, according to a recent report by A.M. Best. The report observed that, while ... Read the full article
Profitability varied across competitive European re/insurance markets: A.M. Best
30th August 2018
Profitability for companies operating in the European re/insurance markets is extremely varied, largely due to the peculiarities of each market and competition arising predominantly from the reinsurance sector, according to a recent report by A.M. Best. The rating agency observed that a handful of participants continue to dominate the European markets, ... Read the full article
Carriers sufficiently reinsured to withstand Hurricane Lane losses: A.M. Best
29th August 2018
Insurance carriers operating in Hawaii have sufficient capital and appropriate reinsurance programs in place to effectively absorb losses resulting from Hurricane Lane, which battered Hawaii with floods and landslides last week, according to A.M. Best. While Hurricane Lane never quite made direct landfall on Hawaii, it brought over 50 inches ... Read the full article
Luxembourg proving attractive but post-Brexit EU domicile choice varied
28th August 2018
A number of UK insurers and reinsurers have established new EU hubs to ensure continuity post-Brexit amid a real lack of clarity, with the new domicile of choice being driven by specific considerations, according to A.M. Best. UK insurers and reinsurers continue to move forward with their post-Brexit plans amid ... Read the full article
European insurers favouring profitability over top-line growth, A.M. Best
28th August 2018
An increasing focus on delivering profits to shareholders over top-line growth is driving European insurers to favour high margin lines in order to meet return on equity (ROE) targets, says A.M. Best in a new report. For others, mergers and acquisition (M&A) deals represent a means of optimising portfolios whilst providing ... Read the full article
Cyber insurers could lose up to 119% of policyholder surplus in single event: A.M. Best
20th August 2018
A new collaborative report by A.M. Best and Guidewire Software has estimated that three of the top 20 cyber insurers could generate significant gross losses to policyholder surplus of between 15% to 119% from a single cyber catastrophe event occurring in 2022. A.M. Best and Guidewire’s Cyence Risk Analytics team extrapolated ... Read the full article
Over-dependence on Quard’ Hasan harming re/takaful sector: A.M. Best
20th August 2018
A.M Best believes that an over-dependence on interest-free loans (Quard’ Hasan) by the Middle East and North America (MENA) re/takaful sector is driving up policyholder deficits and not providing enough incentive for operators to manage their companies effectively. As competitive market conditions create significant underwriting losses, operators’ reliance on the Quard ... Read the full article
London to remain global re/insurance hub post-Brexit, but stronger headwinds exist: A.M. Best
20th August 2018
Despite a lack of clarity surrounding the UK's Brexit vote and what implications this might have for UK insurers and reinsurers, A.M. Best expects London to remain one of the world's leading European insurance hubs, but does warn of headwinds that continue to pressure the region's re/insurance industry. UK insurers ... Read the full article
Re/insurers accelerate Brexit plans: A.M. Best
17th August 2018
As widespread and seemingly growing uncertainty remains around the UK's vote to leave the European Union (EU), insurers and reinsurers in the country have stepped up their post-Brexit plans in an effort to ensure continuity for clients, reports A.M. Best. The outcome of the UK's Brexit vote remains very uncertain for ... Read the full article
Mexico’s President-elect could create opportunities for insurers: A.M. Best
15th August 2018
A political shift in Mexico that has seen López Obrador become the country’s first leftist president-elect in decades could benefit the environment for health and agriculture insurance coverages, as well as the wider insurance market, says A.M. Best. Director of Analytics, Alfonso Novelo and Eli Sanchez, Senior Financial Analyst, both of ... Read the full article
California re/insurers must re-evaluate ‘new normal’ wildfire risks: A.M. Best
10th August 2018
Re/insurers operating in California must re-evaluate the way they approach wildfire risk as the heavy losses experienced over 2017 and during the Carr and Mendocino Complex fires in 2018 may be set to become the ‘new normal’, according to A.M. Best. A recent report by the rating agency observed that insured ... Read the full article
Potential for private markets to provide long-term U.S flood relief: A.M. Best
2nd August 2018
In preventing the National Flood Insurance Program (NFIP) from expiring with a last minute vote, and securing its continuation through November 2018 without any of the long-requested amendments, the U.S congress has highlighted the potential for private markets to provide long-term flood relief, A.M. Best says. This assessment comes as the ... Read the full article
GCC countries must focus on ERM following recent losses: A.M. Best
1st August 2018
Countries belonging to the Gulf Cooperation Council (GCC) must increasingly focus on enterprise risk management (ERM) strategies following a recent series of both natural catastrophes and man-made losses, according to a report by rating agency A.M. Best. While countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab ... Read the full article
A.M. Best gives Markel’s German insurance subsidiary A rating
30th July 2018
Global rating agency A.M. Best has assigned Markel Corporation's new German insurance subsidiary an A financial strength rating. Markel announced recently that the German federal financial supervisory authority, BaFin, had granted the firm a license to establish an insurance company in the country, called Markel Insurance SE (MISE). Markel explained at the time that the new subsidiary ... Read the full article
Sompo International’s Lexon and Bond Safeguard subsidiaries upgraded
24th July 2018
A.M. Best has upgraded the financial strength rating of Sompo International Holdings Ltd. subsidiaries, Lexon Insurance Company and Bond Safeguard Insurance Company, from B++ (Good) to A+ (Superior), and the Long-Term Issuer Credit Ratings from “bbb” to “aa-”, with a stable outlook. The two firms were previously subsidiaries of Lexon Surety Group LLC, before being acquired ... Read the full article
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