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.
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
Fitch sets negative 2018 outlook for UK non-life company market insurance
27th November 2017
Fitch's outlook for UK non-life company market insurance in 2018 is negative as competition heats up with the growing use of price comparison websites, or "aggregators" pressurising insurers' motor and household insurance earnings. This is combined with the impact of new renewal transparency rules which could "add further pressure on margins ... Read the full article
Large majority of California wildfire losses to be retained by insurers: Fitch
17th November 2017
Fitch expects primary insurers to retain the majority of losses from the California wildfires, warning that the impact of the event, on top of recent hurricanes, could see insurers report aggregate 2017 catastrophe losses at levels that pressure ratings and ultimately strain capital. The October 2017 California wildfires are expected to ... Read the full article
Europe’s big four hit with record Q3 losses but capitalisation remains strong: Fitch
16th November 2017
The capitalisation of Europe's big four reinsurers remains strong, despite a heavy hit to earnings after significant claims from hurricanes Harvey, Irma and Maria (HIM), the Mexico earthquakes and the California wildfires could make Q3 a record year for reinsurers' catastrophe losses. Rating agency Fitch said that while all four reported significant ... Read the full article
London market could become more competitive as FCA investigates broking practices
15th November 2017
Heavy operating costs mean the London market has been losing business to foreign re/insurance hubs in recent years, but according to Fitch Ratings, an upcoming review of broker practices by the Financial Conduct Authority (FCA) could help to reverse this trend. Rising broking commissions have added to pressure on insurers' underwriting ... Read the full article
German life portfolios in run-off to increase in next 5 years: Fitch
19th October 2017
Fitch said Generali's recently announced plans to put its largest German life entity, Generali Leben, into run-off in the first quarter of 2018, confirms its predictions for a significant increase in German life insurance portfolios in run-off over the next five years. Given the size of the Generali Leben portfolio, Fitch predicts the ... Read the full article
Q3 losses will raise London insurance market prices: Fitch
13th October 2017
Catastrophe losses from recent U.S. hurricanes and Mexican earthquakes will raise London Market insurers' prices on loss-affected lines, and could affect pricing trends within the wider market, according to Fitch Ratings. Fitch said in its latest London market report; "We expect 2017 earnings of London market insurers to be significantly reduced ... Read the full article
Fitch warns re/insurers of growing risk of rating downgrades
27th September 2017
Fitch has warned of potential rating downgrades ahead as global 2017 insured losses for re/insurers reach $100 billion and could rise to $190 billion pretax. If insured claims reach the upper end of estimates, this year would become the highest on record for single year insured losses. Hurricane Maria’s devastating impacts in ... Read the full article
U.S. E&S lines to outperform standard lines in 2017, but margin is thinning: Fitch
25th September 2017
Underwriters of U.S. excess & surplus (E&S) lines are expected to continue to outperform standard market underwriters in the coming months, although this is anticipated to be by a smaller degree as market conditions challenge results in 2017, according to Fitch Ratings' U.S. E&S Lines Market Review. Following a small decline ... Read the full article
No rating weakening for hurricane Irma exposed firms: Fitch Ratings
22nd September 2017
Hurricane Irma insured losses are estimated to amount to $25 - $50 billion, causing near-term earnings reduction for exposed firms but no expected rating weakening, according to Fitch Ratings. The rating agency said that while carriers remain well-capitalised with sufficient balance sheets to handle claims from Irma and Harvey, capacity could ... Read the full article
Reinsurers continue to pullback on P&C lines as competition persists: Fitch
14th September 2017
Intense competition from both traditional and alternative providers of reinsurance capacity in the first-half of 2017 combined with falling rates across the property and casualty (P&C) sector is hindering premium growth for the industry, according to Fitch Ratings. For the group of 19 non-life reinsurers tracked by Fitch, and that reported ... Read the full article
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