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.
Life reinsurers remain profitable despite COVID: Fitch
26th April 2021
Analysts at Fitch have reported that the world’s largest life and health reinsurers remained profitable in 2020, as heightened mortality losses from the coronavirus pandemic have only moderately impacted the segment so far. Fitch expects mortality claims related to the pandemic to decline in 2021 for Hannover Rueck SE, Munich Reinsurance ... Read the full article
Further challenges ahead for cyber insurers, warns Fitch
21st April 2021
Analysts at Fitch Ratings note that a higher propensity of cyber incidents will likely hinder a near-term reversal of claims cost trends, suggesting increasing profit pressure for cyber insurers. During 2020, property / casualty (P/C) insurers that write cyber cover reported substantially higher claims losses than in prior years, reports Fitch. Over ... Read the full article
P&C industry remains stable despite challenges from COVID-19: Fitch
14th April 2021
Analysts at Fitch Ratings have released a report which shows that the P&C industry remains stable, despite the considerable economic challenges from the ongoing coronavirus pandemic. Last year the US P&C industry faced many operating challenges from COVID-19, which resulted in vast changes in the workplace and economic environment as well ... Read the full article
Fitch forecasts reinsurance underwriting profits for 2021
13th April 2021
Analysts at Fitch Ratings have forecast an aggregate combined ratio of 99.1% for reinsurer in 2021, meaning the industry is expected to post slight underwriting profitability for the year. This combined ratio reflects 9.0 percentage points of catastrophe losses, 1.5 points for additional coronavirus losses and 1.0 point of reserve releases. Likewise, ... Read the full article
NA reinsurers report deterioration in underwriting results: Fitch
1st April 2021
All North American reinsurers analysed by Fitch Ratings have reported deterioration in underwriting results, leading to underwriting losses. The overall segment reported a combined ratio of 105.4% in 2020, up nearly 9 percentage points from the prior year, with COVID-19 losses as the primary difference. The losses added 7.4 percentage points to ... Read the full article
London Market insurers’ 2020 profits cancelled out by Covid losses, says Fitch
31st March 2021
A majority of London Market insurers are reported by Fitch Ratings to have fallen to either a loss or a very slight profit in 2020, as pandemic-related costs offset most underwriting and investment profits. Despite investment returns having recovered well in the second half of 2020, Fitch states that returns were ... Read the full article
“Large share” of Suez losses will be reinsured, warns Fitch
29th March 2021
The reinsurance market breathed a sigh of relief this morning as the Ever Given was finally dislodged from the banks of the Suez Canal, but analysts at Fitch Ratings have warned that a “large share” of industry losses stemming from the disruption will probably be reinsured. Latest reports suggest the container ... Read the full article
“Substantial portion” of pandemic losses still not reported: Fitch
24th March 2021
Analysts at Fitch Ratings anticipate that payment of pandemic-related claims will accelerate in 2021, and have noted that a “substantial portion” of losses in the re/insurance industry are currently carried as incurred but not reported. In particular, settlement of claims in areas such as business interruption and multiple liability segments will ... Read the full article
Fitch affirms Aon, stays positive on WTW despite merger uncertainty
19th March 2021
Fitch Ratings has affirmed the 'BBB+' Issuer Default Rating (IDR) for Aon and removed its Negative Rating Watch, while maintaining Willis Towers Watson’s 'BBB' Long-Term IDR and issue-level ratings on Rating Watch Positive. This move from the ratings agency is directly linked to the much-talked about combination between the two ... Read the full article
Nat cat risk could become less insurable in future: Fitch
8th March 2021
Analysts at Fitch Ratings believe that natural catastrophe risks could become “less insurable” in future due to the effects of climate change, as well factors like insurance density and economic growth. Re/insurers will likely need to raise premiums in response to the rising severity and frequency of nat cat events, but ... Read the full article
Uri could inflict record Q1 cat losses on US P/C insurers, says Fitch
25th February 2021
Fitch Ratings expects US property/casualty insurers to face record catastrophe losses for this year’s first quarter, following extensive property damage from winter storm Uri. The widespread scale and claims volume of the event could drive ultimate insured losses to a range of $10 billion to $20 billion, the ratings agency said. As ... Read the full article
Homeowners insurance to show modest underwriting loss: Fitch
19th February 2021
Global rating agency, Fitch Ratings has released a report which suggests that the U.S. P&C industry will to shift to a modest statutory underwriting loss in homeowners’ insurance for 2020 reported results. U.S personal lines underwriters have been faced with unique challenges in the homeowners’ line, with losses rising as a ... Read the full article
Ratings activity normal after H1 stress: Fitch
5th February 2021
Fitch Ratings has reported that its rating activity for Western European re/insurers normalized during the second half of 2020 following a substantial increase in negative rating actions over H1. Coronavirus pandemic-related actions drove a 45% rise in the number of western European insurance rating actions taken in 2020, compared to 2019. Of ... Read the full article
Bermudian startups benefitting from clean balance sheets, lack of legacy issues: Fitch
29th January 2021
Fitch Ratings has released a report stating that Bermuda start-ups in 2020 benefited from clean balance sheets and lack of legacy issues or reserves. Analysts believe this could be particularly valuable given the uncertainty around pandemic-related claims and rising social inflation affecting the U.S. casualty business. With these benefits, Fitch sees Bermuda ... Read the full article
Bermuda re/insurers “ripe for take over,” says Fitch
26th January 2021
Analysts at Fitch Ratings believe that certain companies in the Bermuda re/insurance market are “ripe for take over” despite muted M&A market conditions. The rating agency noted that activity in the Bermuda M&A market has been comparatively low in recent months due to the improved pricing environment, which is placing more ... Read the full article
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