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.
IFRS 17 could temporarily increase European insurers’ cost of capital: Fitch
8th February 2018
The new international accounting standard for insurance contracts to be implemented in 2021, IFRS 17, could temporarily increase the cost of capital for European insurers due to investors' concerns over IFRS restatement effects. In an audience poll of investors, insurance issuers, bankers and others with an interest in the insurance market ... Read the full article
Bermuda to attract M&A and start-up activity in 2018: Fitch Ratings
5th February 2018
Fitch expects further Bermuda M&A activity in 2018 as entities seek out ways to manage the challenges of the continued competitive market environment under the additional strain of the recent catastrophe losses. Bermuda market M&A has often centered on non-Bermuda companies buying into Bermuda as a way to deploy capital abroad and ... Read the full article
Demand for bulk purchase annuity business potentially huge: Fitch
31st January 2018
Bulk purchase annuity (BPA) business is becoming increasingly important to the UK life insurance industry, and Fitch Ratings believes BPAs are a key growth area within the UK life sector over the coming years. BPA business is growing in importance to the UK life sector, with established providers continuing to complete ... Read the full article
Changes to U.S. tax law threaten Bermudians’ competitive advantage
26th January 2018
Challenges are looming on the horizon for Bermuda re/insurers whose relative competitive advantage to U.S. firms stands to be somewhat diminished by the recent sweeping U.S. corporate tax law changes. In a report on the Bermudian market Fitch said; "U.S. tax reforms will shrink the profitability gap between Bermuda and U.S. ... Read the full article
Modest rate increases for loss-affected U.S. lines, small improvements elsewhere: Fitch
25th January 2018
Global reinsurance pricing at the January 1st, 2018 renewals season saw modest rate increases in response to significant catastrophe loss activity in the second-half of 2017, with the biggest improvements occurring in loss-affected U.S. lines, notes Fitch Ratings. Unsurprisingly, property catastrophe rates in the U.S. experienced the biggest rate increases at ... Read the full article
Tax changes in Italy could boost catastrophe reinsurance demand
16th January 2018
Catastrophe reinsurance demand from Italian cedants could increase as insurers benefit from the new taxation regime, which gives catastrophe insurers premium exemption from the 22.5% insurance premium tax and makes 19% of premium tax-deductible. Fitch Ratings said the changes to the tax regime will offer new incentives for customers in Italy ... Read the full article
Alternative capital driving potentially flatter underwriting cycle: Fitch
16th January 2018
Fitch Ratings believes the expansion of alternative, or third-party capital has changed the dynamics of the reinsurance market, resulting in modest rate increases at the recent January 1st renewals and driving a potentially flatter underwriting cycle. The extremely active 2017 Atlantic hurricane season combined with powerful earthquakes in Mexico and devastating ... Read the full article
U.S. life insurers can expect mixed impact from tax reforms: Fitch Ratings
12th January 2018
Fitch Ratings has said that the U.S. tax reforms set to come into effect in 2018 will have both positive and negative impacts for domestic life insurers, but warned that a cut in the corporate tax to 21% could result in players using less offshore reinsurance. Essentially, Fitch warns that U.S. ... Read the full article
LICAT framework could see Canadian life insurers reduce reinsurance levels: Fitch
3rd January 2018
Fitch Ratings doesn't expect the final Life Insurance Capital Adequacy Test (LICAT) guideline for Canadian life insurers to negatively impact the sector's capital strength, but warns it could result in firms reducing their reinsurance utilisation. Issued by Read the full article
IFRS 17 unlikely to directly impact insurers’ ratings, says Fitch
27th December 2017
Global financial services ratings agency, Fitch Ratings, has said that the overhaul of insurance accounting as a result of the latest International Financial Reporting Standards, IFRS 17, is unlikely to have a direct impact on insurers' ratings. Fitch says that insurers' ratings most likely won't be affected by the implementation of ... Read the full article
Earnings to be positive in 2018 for reinsurers, but only just above cost of capital: Fitch
13th December 2017
For 2018, Fitch Ratings forecasts a return on equity (ROE) of 7.1% for its group of non-life reinsurance companies, which, while profitable, is only just above the estimated 6% to 7% cost of capital. The international financial services ratings agency underlines persistent underwriting and investment stress for global reinsurers, exacerbated by ... Read the full article
U.S. P/C insurers’ catastrophe losses triple YOY: Fitch
11th December 2017
U.S. property and casualty (P/C) insurers reported a sharp decline in results as catastrophe losses for the group nearly tripled from 2016, according to Fitch Ratings in a new report. Fitch believes that 2017 may see a record for insured catastrophe losses for the U.S. P/C market after Hurricanes Harvey, Irma ... Read the full article
Fitch remains negative on reinsurance, but underwriting results to improve in 2018
8th December 2017
In light of catastrophe losses experienced in the second-half of 2017, Fitch Ratings has maintained its negative outlook for the reinsurance sector, while the majority of reinsurer rating outlooks remain stable. As the January 1st, 2018 renewals fast approach, global reinsurance companies are expecting rate increases to improve the profitability of ... Read the full article
UK life insurance sector revised to stable: Fitch
6th December 2017
Fitch Ratings has revised its outlook for the UK life insurance sector to stable from negative, as a result of the individual annuity market stabilising and ongoing demand for savings and asset management products. Firms remaining in the annuity market are expected to make significant use of longevity reinsurance to minimise ... Read the full article
Price improvements may not relieve pressure on London market: Fitch
27th November 2017
Fitch Ratings maintains an overall negative outlook for the London Market Insurance sector in 2018, although a pricing upswing in loss-affected lines is on the cards. Any increase in pricing isn’t expected to be significant enough to outweigh market pressures, with high expenses and lower reserve releases weighing on London Market ... Read the full article
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