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.
Fitch predicts €5bn insured losses from recent Europe storms
24th February 2022
Analysts at Fitch Ratings are estimating that a series of recent storms that battered much of northern Europe will together cause gross insured losses of as much as €5 billion. Storms Dudley, Eunice and Franklin caused widespread wind and flood damage last week with particularly severe impacts in the Germany, the ... Read the full article
Tech partnerships to inform insurer market positions: Fitch
7th February 2022
Analysts at Fitch Ratings have argued that the success of partnerships with technology firms in the insurance space will play an increasingly important role in the future market position of insurance companies. The rating agency expects to see a rise in the number of partnerships between traditional insurance companies and insurtechs ... Read the full article
Italian and UK non-life sector outlooks differ from rest of Europe: Fitch
28th January 2022
According to Fitch Ratings, the insurance sector outlooks for major European non-life insurance markets in 2022 are mostly neutral, with Italy and the UK being the only exceptions. The rating agency also noted that in most of the markets, the positives, such as better pricing conditions for commercial business lines, are ... Read the full article
“Return on capital to rise for reinsurers” – Fitch
27th January 2022
The reinsurance sector’s return on capital is set to rise, surpassing the high-single digit return that was forecast for last year, says Fitch. This, says the ratings agent, will match the current cost of capital to the industry. It added: “Moderately better underwriting margins and premium growth will help the reinsurance sector ... Read the full article
Reinsurance market capital rose 3-4% in 2021
21st January 2022
The reinsurance market is well capitalised and able to absorb demand for its coverage, according to data from Fitch Ratings. Despite catastrophe losses of more than $100 billion 2021, Fitch reports that traditional and alternative reinsurance capital increased together by around 3-4%. As a result of this growth, the ratings agency feels ... Read the full article
Bermuda’s tax status to be affected by 15% minimum tax rate
19th January 2022
The net profitability gap between Bermuda and non-Bermuda incorporated companies is likely to narrow over time given the implementation of the OECD-driven multilateral agreement to establish a 15% global minimum tax rate, according to Fitch Ratings. The rating agency warned that although the overall benefits of maintaining a Bermuda market domicile ... Read the full article
Underwriting profitability to return, but rate momentum to fade for re/insurers: Fitch
18th January 2022
With carriers poised to report their Q4 and full-year financials in the coming weeks, analysts at Fitch Ratings forecast underwriting profitability for Bermuda-based insurers and reinsurers in 2021, alongside a deceleration of rate increases through the June and July renewals. Despite 2021 being another year of above-average catastrophe activity and subsequent ... Read the full article
Short-term inflation manageable for reinsurers, says Fitch
12th January 2022
The current short-term consumer price inflation (CPI) spike is manageable for the reinsurance industry, but should inflation prolong it could weaken carriers' credit profiles, warns Fitch Ratings. Currently, CPI rates are approaching multi-decade highs in Europe and the U.S. The spill-over effect from the spike has the potential to inflate claims ... Read the full article
Life insurers to see return pressure, manageable losses in 2022: Fitch
17th December 2021
Analysts at Fitch Ratings have warned that sustained low interest rates, the increased role of alternative investment managers and accounting changes will have long-term credit implications for the life insurance industry. The rating agency says pressure on financial performance of legacy in-force business from low interest rates is not expected to ... Read the full article
Favourable pricing driving P&C underwriting profits: Fitch Ratings
16th December 2021
Fitch Ratings has released a report reviewing a group of commercial property & casualty insurers (P&C), which includes American International Group, W. R. Berkley, Chubb, CNA Financial Corp, Liberty Mutual and The Travelers Companies According to Fitch Ratings, the group have demonstrated an operating scale via large premium bases and substantial ... Read the full article
US P&C insurers to generate steady earnings in 2022: Fitch
9th December 2021
According to Fitch Ratings, US property & casualty (P&C) insurers are in a position to generate statutory underwriting profits and steady earnings next year, despite challenges from higher inflation and a likely reduction in contributions from investment gains. Fitch holds a neutral fundamental sector outlook for the US P&C sector for ... Read the full article
Double-digit rise in property cat reinsurance rates for 2022, Fitch says
7th December 2021
Fitch Ratings analysts forsee double-digit premium rate rises for property catastrophe cover in 2022, following an insured loss total of close to $100 billion in 2021 and the prospect of natural catastrophe claims increasing in frequency and severity. In fact, reinsurance rates across catastrophe-related lines of business are expected to rise ... Read the full article
German primary insurers’ capital levels are credit positive: Fitch
1st December 2021
According to Fitch Ratings, German primary insurers’ ratings which are supported by their capital positions, has improved in recent years. The rating agency highlighted that insurers’ capital positions are generally at least level with the ratings assigned, with ‘Very Strong’ or ‘Extremely Strong’ Prism Factor-Based Capital Model (FBM) scores. Most ratings are ... Read the full article
North American P&C insurers show improved GAAP performance: Fitch
24th November 2021
According to a new report from Fitch Ratings, North American Property & Casualty (P&C) re/insurers’ strong premium revenue growth led to improving GAAP operating performance for the nine months in 2021. The revenue growth came from rising commercial rates, reduced incurred losses tied to the coronavirus pandemic and large investment gains ... Read the full article
Fitch highlights strong 9M earnings from Europe’s top 4 reinsurers
15th November 2021
Europe’s four biggest reinsurers are said to have demonstrated strong earnings improvements over the course of 2021’s first nine months, despite what was a period of heavy catastrophe losses for the sector. Fitch Ratings' analysts explained how Munich Re, Swiss Re, Hannover Re and SCOR all posted ... Read the full article
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