Reinsurance News
Fitch Ratings news
News featuring rating agency Fitch Ratings, including the latest reports, rating actions and analysis from the company, as well as news on Fitch’s analysis of the reinsurance sector.
Capital adequacy of large global reinsurers remained ‘Strong’ at end of 2021
12th August 2022
New analysis from Fitch Ratings says that the capital adequacy of large global reinsurers remained at least ‘Strong’ at the end of last year. The analysis also found that the group—comprising Hannover Re, Lloyd’s of London, Munich Re, PartnerRe, SCOR, and Swiss Re—had financial leverage ratios of low to moderate, ranging ... Read the full article
“Global reinsurance M&A transactions limited next year” – Fitch Ratings
10th August 2022
A new note from Fitch Ratings says that M&A transactions in the global reinsurance sector will be limited into 2023 amid investor concerns over macroeconomic risks and heightened catastrophe losses linked to climate change. As a result, the firm said that it expected reinsurers to prioritise pricing, risk management and organic ... Read the full article
Wilton Re’s ratings downgrade related to revision in ownership uplift: Fitch
8th August 2022
Fitch Ratings has downgraded Wilton Re’s Insurer Financial Strength (IFS) ratings amidst revision in ownership uplift. Wilton Re’s IFS rating has been downgraded to 'A' from 'A+'. Fitch has also downgraded Wilton Re’s Long-Term Issuer Default Rating (IDR) to 'BBB+' from 'A-'. The rating outlook is stable. The downgrade reflects a revision ... Read the full article
Weaker US personal lines results driven by rising inflation: Fitch Ratings
3rd August 2022
US personal line insurers have been moved to adjust pricing and underwriting in response to weaker results, which have felt the pressure of rising inflation and costs, according to a recent report. Fitch Ratings analysts have reported that US personal lines insurance written premiums saw a 5% increase in last year ... Read the full article
Société Centrale de Réassurance’s expansion cited as rating affirmed
3rd August 2022
Fitch Ratings has affirmed Morocco-based Société Centrale de Réassurance (SCR) National Insurance Financial Strength (IFS) Rating at ‘AAA(mar)’, the outlook is stable. SCR has gradually increased its international diversification, as reflected in the share of the gross premiums written outside Morocco of 25% in 2021, up from 22% in 2018. Fitch has ... Read the full article
Volatility in Dutch insurers’ Solvency II ratio expected to increase: Fitch
15th July 2022
Analysts at Fitch Ratings have stated that they expect volatility in Dutch insurers’ Solvency II ratios to increase, due to the insurers’ exposure to fluctuating equity and real-estate prices, as well as widening credit spreads and potential credit deterioration. The impact, however, is more emphasised for insurers with less conservative investment ... Read the full article
IFRS 17 not expected to affect insurers’ business models or credit ratings: Fitch
8th July 2022
Analysts at Fitch Ratings have stated that the first public comments from Dutch insurer – ASR, on the implications of IFRS 17 support Fitch Ratings’ view that the new standard will not affect insurers’ business models in the near term. The major European insurer said in an update last month ... Read the full article
US life insurer earnings set to improve after unfavourable 2021 – Fitch
5th July 2022
Operating earnings for midsize, diversified US life insurers in 2021 experienced continued unfavourable impacts, largely due to the pandemic and the resulting above average levels of mortality and morbidity. Another key driver was low interest rates. Relative to historical performance, impacts from the pandemic were manageable, and in ... Read the full article
Insurance fundamentals steady despite macro challenges: Fitch
1st July 2022
Analysts at Fitch Ratings have explained that their neutral sector mid-year outlooks for a vast majority of insurance sectors and regions reflect steady fundamentals across most markets despite the broadly challenging economic climate. In particular, Fitch expects non-life claims to continue to normalise after pandemic pressures, although costs are now rising ... Read the full article
German non-life insurers 2021 combined ratios below 100%: Fitch
28th June 2022
Germany’s non-life insurers net combined ratios for 2021 is around 96%, according to a recent Fitch Ratings analysis. According to the agency, this percentage would continue the sector’s record of combined ratios consistently below 100% (indicating an underwriting profit), even in years with high natural catastrophe losses. Fitch said: “The companies’ net ... Read the full article
Challenging times for Turkish insurers: Fitch
24th June 2022
Turkish insurers' earnings and capital adequacy will likely come under severe strain in 2022-23 as they face one of the most challenging environments of the past decade, according to Fitch Ratings. In a recent report, the agency stated that some insurers could be pushed below minimum regulatory solvency levels due to ... Read the full article
Japanese life profits to remain stable through 2023: Fitch
15th June 2022
Analysts at Fitch Ratings believe that the profitability of the nine traditional nine Japanese life insurers is likely to be stable in the financial year ending 2023. The rating agency notes that underwriting results for this group in FYE22 were moderately worse than in FYE21, due mainly to the Covid-19 health ... Read the full article
Japanese non-life insurance groups “stable through 2023”
13th June 2022
Fitch expects Japan’s three major non-life insurance groups (Tokio Marine, MS&AD, and the SOMPO Group) to post stable profitability in the year ending March 2023, if losses from natural catastrophes remain at the historical average. This, they say, is due to lower claims costs from reduced economic activity during ... Read the full article
Capital adequacy strong amongst peer group, says Fitch Ratings
10th June 2022
Fitch Ratings has said that all global reinsurers it measures in its Prism Factor-Based Capital Model remained ‘strong’ in terms of capital adequacy at the end of last year. The firm partly attributed this to a ‘significant improvement’ in earnings and strong risk-management capabilities that helped to offset capital consumption from ... Read the full article
Hurricanes could challenge P&C industry this year, says Fitch
6th June 2022
A hurricane that hits land could present additional challenges to a P&C sector beset by inflation increases and the potential for stagflation, says Fitch in a new note. The firm said that natural catastrophe losses, particularly severe weather-related events, represent a major source of loss volatility, but capital levels of large ... Read the full article
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