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.
US workers compensation market to report strong profitability in 2020: Fitch Ratings
10th November 2020
Fitch Ratings has recently released a report that shows how the US workers compensation insurance market is positioned to report strong profitability in 2020. Despite considerable economic challenges from the ongoing coronavirus pandemic, the declines in economic activity led to reduced claims frequency that are currently outpacing pandemic-related losses. However, it’s been ... Read the full article
Review of the Solvency II rules could benefit UK insurers: Fitch
27th October 2020
Fitch Ratings has released a report that shows how the UK Treasury's proposed review of the Solvency II (S2) rules could benefit UK insurers by reforming some of its more burdensome aspects and facilitating investment in a wider range of assets. The review seeks to address some of the effects ... Read the full article
US life insurers facing rising commercial mortgage losses off COVID-19: Fitch Ratings
26th October 2020
Life insurers are expected to see higher losses on commercial mortgage loans compared to levels seen during the Global Financial Crisis (GFC), reflecting both the severity of the pandemic fallout and the slow pace of the expected recovery, according to Fitch Ratings. Analysts expect elevated losses from the coronavirus pandemic to ... Read the full article
COVID-19 driving up P/C inland marine underwriting losses: Fitch Ratings
23rd October 2020
Pandemic-related insured losses led to unprecedented volatility in the inland marine property/casualty insurance segment in the first half of 2020 and is expected to extend into 2021, Fitch Ratings says. However, Fitch does note that underwriting volatility and weakness is unlikely to continue longer term as underwriters raise premium rates and ... Read the full article
COVID-19 to drive near term D&O losses: Fitch
22nd October 2020
Fitch Ratings analysts expect underwriting losses to continue over the near term for the US directors & officers (D&O) liability insurance segment. While claims related to the COVID-19 pandemic will take several years to fully pay out, Fitch says there is limited risk to ratings of individual insurers from the D&O ... Read the full article
Q3 losses may exceed cat budgets, pressure earnings: Fitch
16th October 2020
Analysts at Fitch Ratings have warned that the accumulation of catastrophe losses over the third quarter of 2020 may exceed the budgets of many companies and put further pressure on full-year earnings. The level of cat losses reported by the US property and casualty (P&C) industry is at its highest since ... Read the full article
L&G Re receives Fitch Ratings upgrade
8th October 2020
Legal & General Reinsurance has received an ‘A+’ to ‘AA-‘ upgrade to its Insurer Financial Strength from Fitch Ratings. AA ratings indicate a very low expectation of ceased or interrupted payments, and suggest a very strong capacity to meet policyholder and contractual obligations. This capacity is not especially vulnerable to foreseeable events. L&G Re's ... Read the full article
P&C insurers seeing better growth as premium rates rise: Fitch Ratings
5th October 2020
According to a new report by Fitch Ratings, property & casualty insurers that specialise in the E&S market are seeing better growth and profit opportunities as premium rates rise in many segments. However, it is likely that market performance in 2020 will remain subpar due largely to absorption of losses from ... Read the full article
ARC eyes inwards reinsurance after securing first industry rating
2nd October 2020
African Risk Capacity Limited (ARC), the commercial subsidiary of the African Risk Capacity Group (ARC Group), has secured an IFS 'BBB+' with Stable Outlook from Fitch, allowing the firm to gain access to new business by taking on inwards reinsurance. ARC’s Chief Executive Officer described the industry rating as an important ... Read the full article
P/C insurers at risk from pandemic, cat losses in H2: Fitch Ratings
1st October 2020
While US property-casualty insurers' results in the second half of 2020 will continue to be impacted by COVID-related insured losses and premium volume declines, significant hurricane and wildfire losses are likely to emerge as the greater threat to profitability, according to Fitch Ratings. Fitch says the full-year 2020 combined ratio will likely ... Read the full article
FCA measures could stunt UK home & motor profits in late 2021: Fitch Ratings
29th September 2020
Fitch Ratings is currently exploring how UK motor and home insurers could have lower profits in late 2021 and into 2022 following new measures proposed by the Financial Conduct Authority (FCA). Last week, the UK regulator announced a number of interventions designed to tackle high prices for customers who do ... Read the full article
Fitch removes Lloyd’s from Rating Watch Negative as underwriting improves
18th September 2020
Fitch Ratings has removed Lloyd's of London's, Lloyd's Insurance Company (China) Ltd.'s, and Lloyd's Insurance Company S.A.'s Insurer Financial Strength (IFS) Ratings from Rating Watch Negative (RWN). At the same time, Fitch has affirmed Lloyd's and its two operating subsidiaries' IFS Ratings at 'AA-' (very strong), while the outlook is stable. At ... Read the full article
BI test case ruling unlikely to affect ratings of UK non-life insurers: Fitch
16th September 2020
The recent High Court ruling on the COVID-19 business interruption (BI) insurance test case, brought by the Financial Conduct Authority (FCA), is unlikely to have an adverse impact on the ratings of UK non-life insurers, says Fitch Ratings. The recent judgement went against insurers in a number of areas, and ... Read the full article
Fitch stays negative on global reinsurance for 2021 amid COVID-19 impacts
10th September 2020
Fitch has said that the outlook for the global reinsurance sector for 2021 remains negative, amid growing COVID-19 losses, the global economic contraction, and the lower for longer interest rate environment. The ratings agency's outlook for the global reinsurance industry turned negative back in March, and while reinsurance companies are ... Read the full article
Expect “low double-digit” price rises at Jan 1 reinsurance renewals, says Fitch
9th September 2020
On the back of consecutive years of rate increases at the mid-year across most lines of property and casualty (P&C) reinsurance business, Fitch Ratings expects to see low double-digit price rises at the important January 1st, 2021 renewals. Positive rate momentum in the reinsurance industry continued at the April and June/July ... Read the full article
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