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.
James River Group sets up Carolina Re in response to tax reforms
23rd February 2018
James River Group Holdings, Ltd. has announced that effective January 1st, 2018, the firm will restructure its internal quota share to be ceded to Carolina Re Ltd., a newly established Bermuda Class 3A re/insurer. The restructuring steps taken by James River Group is in response to the introduction of the Tax Cuts ... Read the full article
“Unfavourable trends” push A.M. Best to go negative on AXIS Capital
19th February 2018
Rating agency A.M. Best has turned negative on the ratings of Bermudian insurance and reinsurance firm AXIS Capital Holdings Limited, citing "unfavorable trends in the group’s operating performance." Specifically, A.M. Best said that AXIS' insurance segment is the main source of its concern, saying that, "Historically AXIS’ operating performance ranks among ... Read the full article
Influx of alternative capital provides fresh opportunities for innovative reinsurers
16th February 2018
The latest A.M Best review of the U.S. property/casualty industry has highlighted how reinsurers are responding to disruptive innovation by shifting strategies to look for opportunities to benefit from, and collaborate with the influx of alternative capital into the market. Part of what has pressured this market so significantly is the ... Read the full article
Sustainability of current retakaful model to be tested: A.M. Best
14th February 2018
The retakaful market remains small and extremely challenging with companies struggling to compete with conventional reinsurers, putting the sustainability of the retakaful model in doubt, according to international ratings agency, A.M. Best. Retakaful is the Islamic alternative to reinsurance, and owing to greater interest for Islamic insurance (takaful), A.M. Best highlights ... Read the full article
M&A trend leans towards finding “parental protection”: A.M. Best
12th February 2018
Three years ago the market was rife with merger and acquisition (M&A) transactions aimed at scale and market footprint building, however, the trend now for M&As appears to be leaning toward finding a home in a larger organisation, according to A.M. Best's recent market report on the U.S. property/casualty space. In ... Read the full article
U.S. P/C sector to record $29.3bn underwriting loss in 2017: A.M. Best
9th February 2018
Global financial services ratings agency, A.M. Best, expects the U.S. property and casualty (P/C) sector to record a net underwriting loss of $29.3 billion in 2017 on the back of a $6.5 billion loss in 2016, driven by the high level of catastrophe losses experienced in the third and fourth-quarter. 2017 ... Read the full article
GCC market outlook negative, but focus on risk management is growing: A.M. Best
9th February 2018
Despite the balance sheets of insurers in the Gulf Cooperation Council (GCC) remaining well capitalised, the potential for investment market shocks persists, leading ratings agency A.M. Best to hold a negative outlook on the GCC insurance markets. Typically, insurance companies across GCC (Read the full article
R&Q’s rating for its Malta subsidiary “an important step”
7th February 2018
R&Q Investment Holdings' (R&Q) European subsidiary R&Q Insurance Malta has received an A- (excellent) credit and financial strength rating from A.M. Best, which the CEO called "an important step" in the firms development. In addition, A.M. Best gave the R&Q Group a bbb- rating with a stable outlook for R&Q. R&Q called ... Read the full article
Tax reform drives U.S. domiciled re/insurers to change contracts with foreign affiliates
6th February 2018
A.M. Best expects rated U.S. domiciled re/insurers with material financial arrangements with foreign affiliates to make significant changes to these reinsurance contracts in response to the base erosion and anti-abuse tax (BEAT) measure of the tax reform. In particular, quota share, excess of loss, or stop-loss agreements with foreign affiliates are ... Read the full article
Optimism over bottoming out of reinsurance rates could be “foolhardy”: A.M. Best
2nd February 2018
Some re/insurance industry experts and analysts have been extolling the much awaited possibility of a bottoming out of the re/insurance pricing cycle after record-setting 2017 losses and ensuing uptick in some January 2018 rates, A.M. Best however called long-term optimism "foolhardy" given the abundant levels of reinsurance capacity. The rating agency ... Read the full article
European re/insurers stable despite intensely competitive market: A.M. Best
2nd February 2018
Western European re/insurers enjoy stable ratings and an operating environment that's showing signs of picking up as economic activity increases across the Eurozone, but players are still walking the tightrope of a saturated and highly competitive, pressurised market. Despite limited growth prospects and a continued backdrop of low investment returns, A.M. ... Read the full article
MENA offers attractive growth opportunities despite growing headwinds: A.M. Best
1st February 2018
The Middle East & North African (MENA) region offer attractive growth opportunities, however the credit quality of re/insurers operating in the territory is likely to be tested over the next few years as a result of the increasing geopolitical uncertainty, A.M. Best said in a Special Report on MENA. Analysts pointed ... Read the full article
Life/annuity cedants to offshore reinsurers advised to watch counterparty risk: A.M. Best
1st February 2018
About 30% of total life/annuity (L/A) premiums ceded by U.S. insurers are sent to offshore affiliates as multinationals seek out opportunities for capital and tax efficiencies, however, A.M. Best highlighted in a special report that ceding to unaffiliated offshore reinsurers can bring additional risks. The rating agency cautioned firms to do ... Read the full article
U.S. life/annuity insurers’ appetite for reinsurance growing, but options decline: A.M. Best
22nd January 2018
U.S. life/annuity insurers have an increased appetite for utilising reinsurance protection as a risk management tool, but consolidation in the U.S. life reinsurance sector is limiting the options for primary players, according to ratings agency A.M. Best. A.M. Best states that U.S. life/annuity insurance companies have increased the aggregate face amount ... Read the full article
U.S. life reinsurance market forecast as stable for 2018: A.M. Best
17th January 2018
A.M. Best's outlook for the U.S. life reinsurance market for 2018 is stable, with the market characterised by modest growth, mortality levels that remain within pricing parameters and the strong positions of major players. Michael Adams, A.M. Best, Senior Financial Analyst, commenting on the stable outlook, said; "reinsurers are somewhat less ... Read the full article
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