Reinsurance News
Coronavirus news
Coronavirus news coverage of relevance to reinsurance and insurance markets.
All of our Covid-19 coronavirus news, analysis and insight related to insurance and reinsurance market impacts can be found below.
The coronavirus Covid-19 pandemic of 2019-20 resulted in significant disruption and threatened losses widely across the insurance and reinsurance markets.
COVID-19 triggers shift in largest airport exposures
3rd June 2020
New data from risk management company Russell Group shows that the top 10 airports by exposure have changed as a result of COVID-19 restrictions. Airports such as Heathrow, Paris CDG and Los Angeles have dropped out of the rankings due to a $50 billion increase in the value of grounded aircraft ... Read the full article
Hurricane season presents “unique challenges” for re/insurers: Fitch
3rd June 2020
Insurers and reinsurers will face “unique challenges” during the upcoming hurricane season, according to Fitch Ratings, with the ongoing COVID-19 pandemic set to test many companies. NOAA data shows that 2020 is already forecast to be above average in terms of hurricane activity, and analysts fear that a major event ... Read the full article
Direct Insurance Group commits to post-Covid remote work policy
3rd June 2020
Global speciality insurance business Direct Insurance Group is to become the first insurance group to formally commit to a remote working policy for all staff permanently. This comes following widespread disruption caused by the coronavirus pandemic has provided a new perspective on employee workflow. All staff within its business who want to ... Read the full article
RenRe capital raise tops $1bn after $166 share pricing
3rd June 2020
Bermuda domiciled reinsurer RenaissanceRe has announced a $166 per-share pricing for its offering of 5,500,000 common shares, which, along with an option for underwriters to buy an additional 825,000 shares, brings the total equity raise to around $1.125 billion in total. This figure includes $75 million worth of common stock that ... Read the full article
AXA puts P&C virus claims at €1.2bn, cuts dividend
3rd June 2020
Global insurer AXA has estimated that the COVID-19 pandemic will result in an overall P&C claims cost of €1.2 billion, post-tax and net of reinsurance. The figure came alongside news that the company will cut its dividend almost in half, from €1.43 per share to €0.73 per share. This decision, approved by ... Read the full article
The London Market needs to think about its evolution, says AM Best
3rd June 2020
The COVID-19 pandemic has shone a light on the modernisation efforts of the Lloyd's and wider London re/insurance market, potentially driving permanent changes to the way the market both interacts and transacts its business, says A.M. Best. In recent years, the performance of the London Market has been challenged by elevated ... Read the full article
Reinsurance is again “performing quite well”, says Paul Schultz, Aon Securities
2nd June 2020
While the COVID-19 pandemic brings new challenges, the reinsurance industry is once again performing well during a time of major financial market disruption, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities. As part of our sister publication Artemis' series of video interviews with experts and leaders from ... Read the full article
RenRe eyes $1bn capital raise to take advantage of significant opportunities
2nd June 2020
Bermuda domiciled reinsurer RenaissanceRe Holdings Ltd. (RenRe) has announced the public offering of 5,500,000 common shares and a concurrent private placement by existing shareholder State Farm, as it looks to raise capital in order to take advantage of current market conditions. Assuming a public offering price of $164.91 per share, the ... Read the full article
Lancashire expected to go for growth, Morgan Stanley analysts say
2nd June 2020
Analysts at Morgan Stanley are expecting Lancashire Holdings Limited to take advantage of the hardening market and expand its footprint, while at the same time improve profitability on the back of better pricing. With P&C pricing anticipated to improve further in 2020 and potentially into 2021, Lancashire is well placed to ... Read the full article
Munich Re to defend ‘extremely strong’ position despite Covid hit: S&P
2nd June 2020
While S&P Global Ratings expects Munich Re's performance to decline in 2020 due to COVID-19, sufficient capital means the reinsurer will be able to defend its 'extremely strong competitive position' over the next 12-24 months. This capital position is supported by retained earnings and the temporary suspension of Munich Re's €1 ... Read the full article
Property catastrophe reinsurance rates rise 26% at June 1st: Hyperion X
2nd June 2020
Data from Hyperion X Analytics reveals that property catastrophe reinsurance rates-on-line increased by an estimated 26.1% at the June 1st, 2020 reinsurance renewals. The company has released its June 1st property cat rate-on-line index, which indicates average risk-adjusted rate increases of 26.1%. Prior to the COVID-19 pandemic, reinsurance rates were expected to ... Read the full article
Lloyd’s to trial virtual underwriting room in COVID-19 response
1st June 2020
As part of its response to the COVID-19 pandemic, insurance and reinsurance marketplace Lloyd’s of London is planning to explore options for a “virtual” underwriting room. The idea is to add online elements that allow brokers and underwriters to connect in a similar way to the physical 1 Lime Street location ... Read the full article
Insurers welcome FCA update on pandemic BI claims
1st June 2020
Zurich Insurance Group and RSA are among those to welcome the update from the Financial Conduct Authority (FCA) as the UK regulator seeks to obtain legal clarity on business interruption claims related to the COVID-19 pandemic. After consulting with 56 insurers over the past month, the FCA announced today that ... Read the full article
UK regulator identifies disputable BI policy wordings
1st June 2020
As part of its effort to seek legal clarity on business interruption (BI) claims related to the COVID-19 pandemic, the Financial Conduct Authority (FCA) has identified a sample of policy wordings that are representative of the key arguable issues. The UK regulator announced on May 1st that it would seek ... Read the full article
Pandemic Re Steering Group establishes Project Committee & working groups
1st June 2020
The Pandemic Re Steering Committee, launched to propose an industry response to both the UK Government and the country for future pandemics, has established a Project Committee and six working groups. The newly formed Project Committee will be led by Michael Dawson of Nuclear Insurance as Chair, who will also be ... Read the full article