Reinsurance News
COVID-19 news
News about the impact of the global COVID-19 coronavirus pandemic and how it affected insurance and reinsurance markets.
Demand for pandemic cover rising, but capacity limited: Third Point Re CEO
19th May 2020
There’s been a notable rise in demand for pandemic re/insurance and a subsequent hike in rates, however, there’s currently limited capacity in the marketplace for pandemic cover, according to Dan Malloy, Chief Executive Officer (CEO) of Third Point Re. These are unprecedented times for the industry, and it will undoubtedly be ... Read the full article
Beazley successful in $300 million capital raise
19th May 2020
Specialist insurer and reinsurer Beazley has announced the successful completion of its previously announced $300 million (£247 million) equity placement. Beazley said yesterday that it is raising capital in the form of an equity placement in order to support growth and take advantage of rising rates being seen across its ... Read the full article
Lloyd’s COVID-19 loss estimate may be conservative: Argenta
19th May 2020
Analysts at managing agency Argenta Group have argued that Lloyd’s has been conservative in its estimates of the insurance losses it will face due to the COVID-19 pandemic. The insurance and reinsurance marketplace previously said that it will pay customers between $3 billion and $4.3 billion in claims, out of ... Read the full article
COVID-19 turns S&P negative on global reinsurance
19th May 2020
With rising property and casualty reinsurance claims and failing investment returns, S&P Global Ratings expects the coronavirus pandemic to turn 2020 into a tough year for global reinsurers. As a consequence, S&P believes the sector's ability to earn its cost of capital in 2020 has visibly reduced, to almost negligible. Including assumptions ... Read the full article
London Market’s dominance remains, but share of global reinsurance is fading
19th May 2020
The London Market's share of the global commercial re/insurance market remained steady between 2010 and 2018, although its share of global reinsurance did decline by 1.7 percentage points during the period, according to analysis by the London Market Group (LMG) and McKinsey. In a new report released today, titled London Matters ... Read the full article
COVID-19 disruption could promote sustainable habits: Swiss Re
19th May 2020
The unprecedented disruptions to business operations and personal lifestyles caused by the COVID-19 pandemic could help people to develop more climate-conscious habits, according to Alison McLean, Head of Behavioural Research at Swiss Re. McLean noted that the pandemic has already resulted in extraordinary changes to behaviour, as 80-90% of people in ... Read the full article
Pandemic an opportunity to build better economies: WEF
19th May 2020
A new report by the World Economic Forum (WEF), in partnership with Marsh & McLennan (MMC) and Zurich Insurance Group, has argued that world leaders, businesses and policy makers have a unique opportunity to build better economies as they begin to recover from the COVID-19 pandemic. As part of the report, ... Read the full article
Beazley to raise $300m to support growth, capitalise on rates
18th May 2020
Specialist insurance and reinsurance group Beazley is raising capital in the form of a roughly $300 million equity placement, as it looks to support growth and to capitalise on rising rates being seen across its book. Beazley is the latest to look to a fresh capital raise to not just shore ... Read the full article
The majority of rated re/insurers can withstand pandemic shocks, says A.M. Best
18th May 2020
Global financial services ratings agency, A.M. Best, has said that initial stress testing shows that the majority of its rated insurers can withstand potential shocks to their balance sheets as a result of the ongoing COVID-19 pandemic. The ratings agency announced in March that it was in the process of ... Read the full article
FCA invites market participation to help resolve COVID-19 BI disputes
18th May 2020
The UK’s Financial Conduct Authority has begun seeking input from insurers and brokers to help address and understand ongoing contractual issues surrounding coronavirus-related business interruption cover. The regulator said earlier this month that it was seeking a court declaration to help resolve the wide-ranging issue. As was noted at the time, ... Read the full article
S&P revises PartnerRe outlook to stable from positive as Covéa deal collapses
18th May 2020
S&P Global Ratings has revised its outlook on Bermuda-based reinsurer PartnerRe to Stable from Positive following the collapse of its acquisition by French insurer Covéa. It was revealed last week that the $9 billion deal had been called off after owner EXOR declined to renegotiate the price in the context ... Read the full article
Munich Re sees a “variety of opportunities” amid pandemic: CFO Jurecka
18th May 2020
Munich Re sees a “variety of opportunities” available as it prepares to traverse the post COVID-19 marketplace, according to Chief Financial Officer (CFO) Christoph Jurecka. Speaking during a call alongside the release of the reinsurer’s Q1 results, Jurecka noted that there was a lot of demand of catastrophe reinsurance at ... Read the full article
Indian life insurance market set for 2020 decline off COVID-19: GlobalData
18th May 2020
Data and analytics company GlobalData expects the Indian life insurance industry to contract in 2020, declining by 0.9% compared to the 8.8% growth recorded in 2019. This revised forecast accounts for the aftermath of the global coronavirus pandemic. As per the latest data, the country's life insurance market is forecasted to grow ... Read the full article
L&H cat bonds most at risk from COVID-19: AM Best
15th May 2020
Analysts at AM Best believe that life and health (L&H) related catastrophe bonds face the greatest threat of losses from the COVID-19 pandemic, compared with other insurance-linked securities (ILS). The rating agency expects the overall impact of the pandemic on the ILS market to be limited, given that the underlying risk ... Read the full article
Skuld reports mixed fiscal 2020 results as CR hits 109%
15th May 2020
Marine insurer Skuld fell to its first negative technical result in 16 years as it’s combined ratio for the fiscal year hit 109%. This negative development was driven by a number of mid-sized and large claims, as well as one-off costs associated with previous year closure of Skuld’s Lloyd’s syndicate 1897. Skuld’s ... Read the full article
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