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.
Impact of Indonesian tsunami on local, global re/insurers to be minor: Fitch
10th January 2019
The recent tsunami to hit Indonesia following the Anak Krakatau volcanic eruption in the closing days of 2018 is not likely to affect the financial stability of the country’s insurers due to comprehensive catastrophe risk management and strong capital buffers, according to Fitch Ratings. It’s also likely that specialist reinsurers in ... Read the full article
Ongoing competition to impact profits in London non-life sector: Fitch
27th December 2018
The profitability of companies in the London, UK non-life re/insurance sector will continue to come under pressure throughout 2019 as intense competition erodes margins, according to Fitch Ratings. Fitch said its outlook for the sector would remain negative in light of a number of ongoing challenges, including regulatory scrutiny, high expense ... Read the full article
California wildfires to have modest impact on year-end P&C results: Fitch
20th December 2018
While the gross property and casualty (P&C) insured loss from the California wildfires have been significant, a considerable amount is expected to have been ceded to various global reinsurance markets, reducing the net exposure of the domestic primary market, according to Fitch Ratings. Fitch maintains stable outlooks on both the U.S ... Read the full article
German non-life rates to continue rising through 2019: Fitch
17th December 2018
German non-life re/insurers are likely to continue raising their premium rates throughout 2019 to maintain profitability as the sector deals with increasing costs per claim and dwindling investment returns, according to a new report by Fitch Ratings. The rating agency forecasts overall premium growth of 2.3% in the sector, largely driven ... Read the full article
No-deal Brexit poses risk for re/insurers despite fall-back plans: Fitch
11th December 2018
Interim solutions and contingency planning are reducing some of the risks of a ‘no-deal’ Brexit, but it remains uncertain how restrictions on cross-border authorisation could potentially impact re/insurers and other financial institutions (FIs), according to analysts at Fitch Ratings. The rating agency noted that a range of potential Brexit outcomes still ... Read the full article
Fitch revises negative outlook as U.S P&C sector recovers
4th December 2018
Fitch Ratings has revised its outlook for the U.S property and casualty (P&C) sector from negative to stable due to a notable recovery in the market following a challenging 2017. The rating agency’s 2019 outlook report noted that U.S P&C profitability rebounded in 2018 after a meaningful underwriting loss in the ... Read the full article
U.S. life re/insurance 2019 outlook stable amid benign credit conditions
29th November 2018
The fundamental sector outlook for U.S life re/insurers in 2019 is stable, with continued benign credit conditions, reduced pressure from low interest rates and strong balance sheet metrics supportive of ratings expectations, Fitch Ratings says. However, Fitch's stable sector outlook remains vulnerable to a big market shock, which it views as ... Read the full article
While significant, wildfire losses should be within budget: Fitch Ratings
21st November 2018
The recent outbreak of wildfires in California is likely to have a negative impact on the Q4 earnings of re/insurers with property exposure in the state, but losses should remain within budget for most companies, according to Fitch Ratings. The rating agency said that wildfire losses should not exceed the level ... Read the full article
Tokio Marine’s sale of reinsurance units to boost efficiency: Fitch Ratings
12th November 2018
The recent sale of Tokio Marine Holdings’ two European reinsurance subsidiaries is likely to streamline the firm's holdings and boost operational efficiency in the group's underwriting businesses, Fitch Ratings says. Tokio Millennium Re AG and Tokio Millennium Re are both set to be acquired by Bermudian reinsurance company RenaissanceRe following ... Read the full article
U.S life insurers to experience long-term care reserves charges: Fitch
29th October 2018
Fitch Ratings believes that life insurers in the U.S are likely to experience material reserve charges related to long-term care (LTC) products through 2019 due to overly aggressive assumptions for statutory reserving. A report by the rating agency noted that statutory reserving across the industry continues to be based on overly ... Read the full article
Underwriting losses continue for U.S Medical Professional Liability: Fitch
16th October 2018
The U.S Medical Professional Liability Insurance (MPLI) sector has experienced underwriting losses for a second consecutive year, posting a combined ratio of 102% in both 2016 and 2017, according to a new report by Fitch Ratings. Calendar-year results in MPLI continue to benefit from favourable loss reserve development, which averaged 20% ... Read the full article
Re/insurer’s IFS ratings unlikely to face adverse impacts from Michael: Fitch
12th October 2018
While hurricane Michael will add to the insured catastrophe losses accumulated thus far this year and push 2018 closer to a more normal catastrophe loss year, re/insurer's individual Insurer Financial Strength (IFS) ratings are unlikely to face adverse impacts, according to Fitch. Fitch believes the property/casualty re/industry is well positioned to absorb ... Read the full article
Reinsurance M&A to continue, driven by alternative capital access: Fitch
4th October 2018
Mergers and acquisitions (M&A) activity in the reinsurance industry is expected to continue, driven in part by a desire for companies to gain better access to alternative capital platforms, according to Fitch Ratings. Consolidation provides a range of potential benefits for reinsurers, including revenue diversification, economies of scales, improved return on ... Read the full article
U.S. life insurers experience improved profitability in 2018: Fitch
27th September 2018
Approximately two-thirds of publicly traded life insurers in the U.S. rated by Fitch improved profitability in the first-half of 2018, and while higher interest rates will mitigate spread compression, the rating agency warns that this will remain a headwind in the second half of the year. For the U.S. life insurers ... Read the full article
Pricing will remain flat at 1/1 renewals: Fitch Ratings
25th September 2018
Although reinsurance pricing improved to some extent over 2018, abundant levels of underwriting capacity continue to absorb any increase in reinsurance demand, meaning rates are not expected to improve significantly at 1 January 2019 renewals, according to Fitch Ratings. Rates improvements were greatest at the January renewals in 2018, but subsequent ... Read the full article
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