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AM Best
Insurance and reinsurance industry news that mentions rating agency AM Best. AM Best is a key rating agency for insurers and reinsurers, with its insurance and reinsurance ratings and analysis closely watched by market participants.
AM Best turns negative on Russian re/insurer ratings
2nd March 2022
Ratings agency AM Best has placed under review with negative implications the Financial Strength Rating (FSR) and the Long-Term Issuer Credit Rating of a number of Russian insurance companies, driven by heightened geopolitical, economic and financial system risk in the country. As Western nations impose sanctions on Russia amid its unprovoked ... Read the full article
Russian invasion of Ukraine likely to have ‘significant fallout’: AM Best
28th February 2022
Russia’s invasion of Ukraine will likely have significant fallout in the capital markets, impacting the entire industry in the short-to-medium term, says AM Best. Citing the potential for cyberattacks, AM Best said that the invasion may have ‘a substantial impact on the world’s insurance industry’. It added: “The economic effects of sanctions ... Read the full article
AM Best revises MS Amlin’s rating outlook to negative on ‘weakening underwriting’
24th February 2022
In light of a "weakening underwriting performance" in recent years, ratings agency AM Best has revised the outlook for the Long-Term Issuer Credit Rating of MS Amlin AG (Switzerland) to negative from stable. At the same time, AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ... Read the full article
P&C credit ratings back to pre-pandemic levels: AM Best
23rd February 2022
According to rating agency AM Best, last year credit rating upgrades in the U.S. property & casualty (P&C) insurance segment bounced back to pre-pandemic levels, increasing to 7.7% of all rating actions compared with 5.3% in 2020. The report noted that rating actions for P&C carriers decreased slightly, to 704 in ... Read the full article
P&I clubs likely to make underwriting loss in 2021/22: AM Best
17th February 2022
Analysts at AM Best expect that with the cost of pooled claims at a record high for the first half of the year, protection & Indemnity (P&I) clubs are likely to return another combined underwriting loss in 2021/22. For the third consecutive year, the majority of clubs have announced general increases ... Read the full article
AM Best rates Himalayan Re
16th February 2022
AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to Himalayan Re. The agency described the outlook to these ratings as being ‘stable’ and that the company’s balance sheet was strong. It also said it had an adequate operating performance, limited ... Read the full article
Brazil’s reinsurance market remains at negative: AM Best
15th February 2022
Analysts at AM Best have commented on the impact the COVID-19 pandemic has had on Brazil's macroeconomic instability, and how macroeconomic and political uncertainties have grown, making the country more vulnerable to volatility in the global markets. The analysts explained that although these issues were not enough to stop the country's ... Read the full article
AM Best reports US insurance lines bouncing back after 2020
2nd February 2022
The US property and casualty lined showed something of a rebound in 2021, according to new analysis from AM Best. The company just published a special report looking at the figures through Q3 2021. It said that there had been a return to more ‘normal’ results in comparison with 2020. AM Best ... Read the full article
December insured losses 4.9x usual due to Colorado wildfires and tornadoes
28th January 2022
Insured losses in December were nearly five times their average, according to a new report from Jefferies. The investment bank’s report, named The Weather Front, said that while October and November were ‘benign’ for the insurance and reinsurance industry, ‘December proved to be unexpectedly costly’. “These high insured losses,” wrote its analysts, ... Read the full article
AM Best releases latest MENA region risk analysis
19th January 2022
AM Best has released its latest analysis of risk across the MENA countries, finding that risks within those nation states largely remain high to very high. The analysis outlined five country risk tiers (CRT), with one showing that the nation had the lowest level of risk. Looking at fourteen countries in the ... Read the full article
Demand surge & inflation to increase Colorado wildfire losses, says AM Best
13th January 2022
AM Best has warned that demand surge and inflation will amplify losses related to the December 30th, 2021, late-season Marshall Fire in Boulder County, Colorado, which destroyed more than 1,000 structures. The wildfire arrived at the end of last year and burned through roughly 6,000 acres over two days, and is ... Read the full article
Notional value of US insurer held derivatives tops $3tr: AM Best
11th January 2022
The notional value of derivatives used by the insurance industry in the United States has risen by 45% over the past five years, according to a new AM Best report. Insurers use derivatives in hedging and portfolio management, setting the price of future purchases and sales in order to hedge against ... Read the full article
Industry braced for $5bn+ US tornado bill, survey data suggests
16th December 2021
An approach of over 1,000 re/insurance industry participants has found an expectation for costs to run above $5 billion after multiple US states were swarmed unexpectedly by tornados. 53% of respondents to our survey said the industry should expect a bill higher than $5 billion, with 37% predicting a ... Read the full article
US tornados to hit commercial multiperil, homeowners lines: AM Best
14th December 2021
AM Best is expecting losses from the weekend's devastating tornado outbreak to be concentrated in the commercial multiperil and homeowners lines, with some losses borne by auto physical damage. On December 10 more than 30 tornadoes were reported across five states—Arkansas, Illinois, Kentucky, Missouri, and Tennessee—causing widespread devastation and ... Read the full article
Reinsurers must meet their cost of capital to survive: AM Best
13th December 2021
According to a new report from AM Best, reinsurers must be able to meet their cost of capital to remain relevant and survive. Having navigated five years of elevated property catastrophe activity, and amid rising social inflation, reinsurers have struggled to meet their cost of capital, which has increased during the ... Read the full article
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