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.
Maghreb region’s solid insurance sector growth to continue, says A.M. Best
27th August 2020
AM Best has released a new report, “The Maghreb – One Region, Three Unique Insurance Markets,” which examines the long-term prospects of the three insurance markets of the region. Despite the countries being so close whilst having many commonalities, the insurance markets of Morocco, Algeria and Tunisia couldn’t be more different ... Read the full article
AM Best to keep reinsurance outlook as stable throughout COVID-19
18th August 2020
In 2019, rating agency AM Best noted an overall improvement in non-life market conditions, meaning that they were able to keep their reinsurance outlook as stable in 2020, even throughout the COVID-19 pandemic. Analysts within the firm felt that reinsurers in the non-life segment were also gaining more favourable momentum even ... Read the full article
Cyber growth slows as profits less certain: AM Best
3rd August 2020
Cyber insurance premiums have slowed for the fourth straight year in the US as part of a trend that AM Best attributes to an expanding threat landscape and an increasing awareness of risks. Direct premiums written in the US cyber insurance market increased by 11% year over year in 2019 to ... Read the full article
COVID-19 pandemic compounding cyber risk: AM Best
27th July 2020
The COVID-19 pandemic has compounded cyber risk and should cause re/insurers to rethink and enhance their stress tests, according to analysts at AM Best. The rating agency noted a significant uptick in ‘spoofing’ attacks, with hackers posing as figures from the World Health Organization (WHO) or the Centers for Disease Control ... Read the full article
Market conditions & remedial actions to boost Lloyd’s performance: AM Best
17th July 2020
AM Best has affirmed the credit ratings of Lloyd’s, reasoning that improving market conditions and robust remedial actions will support improvements in performance over the next few years. Analysts maintained the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of ‘a+’ of Lloyd’s (United Kingdom), Lloyd’s Insurance ... Read the full article
Stock market volatility still biggest challenge for Japan re/insurers: AM Best
3rd July 2020
COVID-19 induced volatility in the stock market continues to pose the biggest challenge to the balance sheets of Japan’s major non-life re/insurers, according to analysts at AM Best. The rating agency noted that high common stock leverage among each of Japan’s re/insurers has brought systematic equity price risk into greater consideration. The ... Read the full article
US re/insurers grow private equity holdings 10% in 2019: AM Best
1st July 2020
US re/insurance companies increased their private equity holdings by nearly 10% to $81.3 billion last year, marking four consecutive years of growth, according to AM Best. The rating agency noted that this asset class continues to be an attractive option for re/insurers looking to diversify their investment portfolios or increase returns ... Read the full article
AM Best warns against COVID-19 workers’ compensation laws
23rd June 2020
AM Best has warned that legal efforts in several US states to expand workers’ compensation coverage to allow employees to claim for COVID-19 will have a negative impact on re/insurers. The rating agency turned negative on workers’ compensation lines back in March due to the economic conditions and rise in unemployment ... Read the full article
COVID-19 impact on US health insurers milder than expected: AM Best
5th June 2020
The first-quarter 2020 earnings of publicly traded US health insurance companies show that the impact of the COVID-19 pandemic has been less severe than anticipated, according to AM Best. The rating agency noted that while there have been more than an estimated 1.5 million reported cases of COVID-19 across the US, ... Read the full article
AM Best turns negative on GCC insurance markets amid economic downturn
5th June 2020
Global financial services ratings agency A.M. Best has revised its outlook on the Gulf Cooperation Council (GCC) insurance markets to negative, amid economic downturn across the region and an expectation of fading insurance demand. Lower oil prices and COVID-19 containment measures across the region has resulted in significant economic downturn, notes ... Read the full article
Pandemic to drive significant mortgage reinsurance losses: AM Best
4th June 2020
Analysts at AM Best believe that the COVID-19 pandemic will drive “significant” losses for US mortgage reinsurance business, even as the eventual impact still remains unclear. The rating agency predicts that delinquencies will increase dramatically in the second quarter of 2020 due to forbearance and job losses. While forbearance, loan modifications, and ... Read the full article
Re/insurers continue to reduce hedge fund exposures: AM Best
29th May 2020
The US insurance industry has continued to reduce its hedge fund investments for a fourth year straight, according to AM Best. The rating agency reported that hedge fund investments were reduced by $2.6 billion to $11.9 billion in 2019, with the property and casualty segment reporting a year-over-year reduction of 22%. Analysts ... Read the full article
AM Best maintains negative outlook on Indian non-life market
29th May 2020
AM Best has opted to maintain its negative market segment outlook on India’s non-life insurance sector, owing to COVID-19 driven economic turbulence as well as other areas of uncertainty. Other key factors underpinning AM Best’s outlook include the non-life sector’s strong competition in India, poor pricing discipline in core business lines, ... Read the full article
COVID-19 stress tests positive, but risks still remain: AM Best
28th May 2020
Rating agency AM Best has announced the results of its capital adequacy stress tests as it moves into the second phase of its response to the COVID-19 pandemic. Outside of the life sectors in Canada and the US, the tests have been generally positive, with most rated re/insurers taking only manageable ... Read the full article
AM Best turns negative on Colombian insurance
27th May 2020
AM Best has revised its market segment outlook to negative from stable on Colombia’s insurance industry due to the COVID-19 pandemic. The rating agency argued that the resulting economic damage from the pandemic will put considerable strain on the country’s insurers. While economic conditions in Colombia have improved over the past few ... Read the full article
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