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.
Reinsurer return on equity forecast at 0.6% for 2020 by Fitch
8th July 2020
Analysts at Fitch Ratings have forecast that losses from COVID-19 will severely limit reinsurer’s profitability in 2020, with overall return on equity forecast at just 0.6% for the year. This would be a major downturn compared with the 9.6% return on equity reported by the market last year. Instead, levels would be ... Read the full article
Asset stress main driver for rating downturns: Fitch
30th June 2020
Following a review of the impact of COVID-19 on North American re/insurers, Fitch Ratings has determined that asset stress has contributed the most to its recent negative rating outlook changes. Fitch reviewed its entire portfolio of rated North American insurers over the last couple of months, and took rating actions on ... Read the full article
Influx of capacity could halt reinsurance pricing momentum: Fitch
29th June 2020
Analysts at Fitch Ratings have reported that favourable reinsurance pricing trends are set to continue into 2021, but warned that the large influx of underwriting capacity from recent capital raises could halt this momentum. Fitch noted a significantly harder pricing environment at the June renewals, and attributed the dynamic to years ... Read the full article
Arch Capital raising $1bn with senior debt issuance
25th June 2020
Bermuda-based re/insurer Arch Capital Group has priced $1 billion of 3.635% senior notes as it looks to raise funds for general corporate purposes. This move effectively sees Arch join a number of other companies looking to capitalise on a firming re/insurance marketplace. For Arch, raising capital could be considered important following ... Read the full article
US commercial insurer capital will cover COVID-19 uncertainty, says Fitch
22nd June 2020
A new report from Fitch Ratings states that commercial line insurers' longer-term stability in financial performance and capital strength suggests an ability to withstand stress from adverse events, including catastrophes, adverse reserve development and asset market volatility. Fitch Ratings’ managing director James Auden notes how commercial insurers continue to benefit from ... Read the full article
Title insurers sufficiently capitalised to weather COVID-19: Fitch
19th June 2020
Although revenues in the US title insurance space will inevitably suffer due to the COVID-19 pandemic and its resulting fallout, capitalisation levels will likely be adequate to weather to storm. This is according to analysts at Fitch Ratings, which recently analysed the impact of the coronavirus crisis on the title insurance ... Read the full article
Japan’s non-life insurers to see lower growth, higher reinsurance costs: Fitch
17th June 2020
Non-life insurers in Japan will report lower premium growth in the 2021 financial year, while carriers' earnings will bit adversely hit by the COVID-19 pandemic at a time of rising reinsurance costs, reports Fitch Ratings. Japan, like much of the world, is enduring a slowdown in economic activity as a result ... Read the full article
Hurricane season presents “unique challenges” for re/insurers: Fitch
3rd June 2020
Insurers and reinsurers will face “unique challenges” during the upcoming hurricane season, according to Fitch Ratings, with the ongoing COVID-19 pandemic set to test many companies. NOAA data shows that 2020 is already forecast to be above average in terms of hurricane activity, and analysts fear that a major event ... Read the full article
Higher margins may offset fading investment income for major reinsurers: Fitch
29th May 2020
The financial earnings of the big four European reinsurers will be affected negatively by the COVID-19 pandemic in the short-term, but moving forward, improved technical pricing could largely offset fading investment returns, according to Fitch Ratings. As evidenced by first-quarter 2020 results, the financial impact of the COVID-19 pandemic for the ... Read the full article
COVID-19 fallout poses unforeseen risks for North American insurers: Fitch
28th May 2020
Fitch Ratings sees a potential for North American insurers to be faced with key vulnerabilities and unforeseen downside risks amid the fallout from the coronavirus pandemic. Such risks include outsized investment exposure with market volatility exacerbating potential issuer defaults, increased mortality risk and elevated claims. Fitch revised the life and health insurance ... Read the full article
Global reinsurance sector will fail to earn its cost of capital on COVID-19: Fitch
27th May 2020
The wide-reaching and uncertain impacts of the ongoing COVID-19 pandemic means that the global reinsurance sector will fail to earn its cost of capital in 2020, according to Fitch Ratings. After completing a sector ratings review, Fitch has warned that the financial performance of reinsurers will be hit by mortality claims ... Read the full article
Potential BI litigation enhances uncertainty for UK non-life carriers: Fitch
26th May 2020
Uncertainty remains for some UK non-life insurers amid concerns courts might rule in favour of claims in cases where business interruption (BI) policy wording is loose, warns Fitch Ratings. It's been well documented that, overall, BI losses as a result of the COVID-19 pandemic are expected to be manageable owing to ... Read the full article
Fitch revises Aegon outlook to negative off COVID-19
15th May 2020
Fitch Ratings has revised its outlook for Aegon to negative from stable following disruption to economic activity and financial markets from the coronavirus pandemic. A set of rating assumptions were used by Fitch to develop pro-forma financial metrics for Aegon that were compared with both rating guidelines defined in its criteria, ... Read the full article
Fitch affirms, removes PartnerRe from Rating Watch Positive
15th May 2020
Fitch Ratings has affirmed and removed PartnerRe’s ratings from Rating Watch Positive, including its 'A-' Issuer Default Rating and the 'A+' (Strong) Insurer Financial Strength rating of its principal reinsurance operating subsidiary. The Rating Outlook is Negative. PartnerRe’s removal from Positive Watch follows news that EXOR N.V. and Covea’s $9 ... Read the full article
Fitch upgrades Hiscox outlook after capital raise
12th May 2020
Fitch Ratings has revised the outlook on Hiscox and its core entities to stable from negative to reflect the company’s recent £375 million capital raise. Hiscox completed the capital raise last week through the issuance of 57,693,425 new Ordinary Shares. The proceeds will be used to “to respond to future ... Read the full article
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