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.
AM Best stable on “resilient” Canadian P&C sector
21st September 2021
AM Best is maintaining its stable outlook on what it sees as a "resilient" Canadian property and casualty (P&C) re/insurance sector, based on its strong underwriting performance and capitalisation, as well as the country's relatively successful handling of the COVID-19 pandemic. Canada's GDP contracted by 5.4% last year but is expected ... Read the full article
Surplus lines market to remain tight into 2022: AM Best
21st September 2021
AM Best is expecting that surplus lines market conditions will remain tight for the remainder of 2021 and into 2022 due to the ongoing impact of COVID-19, which, combined with outsized property catastrophe losses, has provided an opportunity for the sector to demonstrate its resilience. Although the surplus lines segment fared ... Read the full article
Ascot’s US and Bermuda units get ratings boost from AM Best
20th September 2021
AM Best has upgraded the issuer credit ratings (ICRs) of Ascot Group’s operating subsidiaries to reflect their strategic importance to the parent company, which is forecast to achieve profitable growth over the medium term. The rating agency upgraded the long-term ICR to “a+” (Excellent) from “a” (Excellent) and affirmed the financial ... Read the full article
Reinsurers well-positioned to meet ESG challenges: AM Best
15th September 2021
The reinsurance market is “well-positioned” to meet the growing challenge of environmental, social and governance (ESG) risks, according to Carlos Wong, Senior Director at AM Best. Speaking during AM Best's virtual Reinsurance Market Briefing as part of this year's cancelled RVS event, Wong acknowledged that the reinsurance industry faces a "big ... Read the full article
Dedicated reinsurance capital estimated at $532bn: AM Best
1st September 2021
New projections from AM Best estimate that dedicated global reinsurance capacity could be at a level of around $532 billion in 2021, representing a 3% increase over the year-end 2020 figure of $517 billion. This estimate accounts for a $2 billion increase in traditional reinsurance capacity, which the rating agency puts ... Read the full article
Ida losses “manageable” for diversified Louisiana insurers: AM Best
1st September 2021
Analysts at AM Best expect losses from Hurricane Ida to be “manageable” for Louisiana insurers, constituting more of an earnings event than a capital event. The rating agency notes that most of the insurers writing direct business in Louisiana are geographically well diversified, with only six having more than 75% of ... Read the full article
AM Best keeps Humboldt Re under review ahead of owner change
31st August 2021
AM Best has decided to maintain its under review with negative implications status for the credit ratings of Humboldt Re Limited, ahead of a change in ownership for the reinsurer. Humboldt Re entered runoff in December 2020 alongside fellow Guernsey domiciled reinsurance vehicle Kelvin Re. Both businesses were managed and backed ... Read the full article
Litigation driving higher loss-costs, says AM Best
25th August 2021
Analysts at AM Best have reported that defence and cost containment (DCC) expenses including defence, litigation and medical cost containment are causing insurance claims to become increasingly severe and more complex. DCC expenses are elevated for certain lines of property and casualty (P&C) business in particular, compared with other lines, the ... Read the full article
ASR Re gains B++ strength rating from AM Best
19th August 2021
ASR Re, the newly launched Bermuda subsidiary of pan-African reinsurer Africa Specialty Risks (ASR), has been assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) by AM Best. The ratings, which both have a stable outlook, reflect ASR’s consolidated balance sheet strength, ... Read the full article
Caribbean P&C insurers surpass expectations: AM Best
17th August 2021
Most property and casualty (P&C) insurers in the Caribbean region surpassed performance expectations in 2020 despite the challenges of COVID-19, according to AM Best. Consolidated net income more than doubled on the 2019 level last year among AM Best rated insurers, despite the pandemic weighing heavily on countries with weak public ... Read the full article
Brookfield’s Bermuda reinsurer North End Re gets preliminary rating
21st July 2021
AM Best has assigned a preliminary rating to North End Re Ltd. (Bermuda), the newly launched Bermuda-based reinsurance subsidiary of alternative asset management company Brookfield Asset Management Reinsurance Partners Ltd. North End Re was given a Preliminary Credit Assessment (PCA) with a Financial Strength Assessment of A- pca (Excellent) and a ... Read the full article
AM Best stays negative on Mexico over pandemic concerns
15th July 2021
AM Best has decided to maintain its negative outlook on Mexico’s insurance market, due to continued concerns over the impacts of the COVID-19 pandemic. In 2020, the rating agency notes that Mexico’s insurers were able to generate minimal business, reflecting the limited economic response to the pandemic on a local level, ... Read the full article
AM Best removes Starstone units from under review status
17th June 2021
Rating agency AM Best has decided to remove StarStone Insurance Bermuda Limited (SIBL) (Bermuda) and StarStone Insurance SE (SISE) (Liechtenstein) from their under review with negative implications status. At the same time, it affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ... Read the full article
AM Best notes growing interest in GCC captives
16th June 2021
Analysts at AM Best have noted growing interest in the creation of captive insurance companies in the Gulf Cooperation Council (GCC) region, due partly to the hardening trend of international commercial insurance rates. The rating agency observed that the use of captive re/insurance in GCC countries has been limited to date, ... Read the full article
Grim prospects for US cyber market: AM Best
9th June 2021
A new AM Best report has argued that prospects for the US cyber insurance market are "grim," due to the significantly worsening risk hazard environment and issues such as ransomware, business interruption and aggregation. Analysts noted that cyber insurance, which began as a diversifying secondary line, is now a primary component ... Read the full article
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