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.
Florida specialists remain largely untested despite 2016 activity: Fitch
12th June 2017
Despite the impacts of Hurricane Matthew and Hurricane Hermine in 2016 the balance sheet and operating infrastructure of many specialist Floridian insurers remains relatively untested against a large loss event, says Fitch Ratings. However, while the $4.5 billion insured loss from Matthew combined with the estimated $400 million loss from ... Read the full article
Hurricane season to bring additional challenges to U.S. P/C industry: Fitch
1st June 2017
The U.S. property & casualty insurance industry is strongly capitalised and has the capacity to withstand what's expected to be an active hurricane season ahead despite the continued challenges of competitive pricing, said Fitch Ratings' in its 2017 hurricane season report. The agency cautioned, however, that a major catastrophic hurricane could be hard-hitting ... Read the full article
Re/insurers’ financial accounts reporting set for major change with IFRS 17 release
22nd May 2017
The International Accounting Standards Board (IASB) has released a new global basis for insurance contracts accounting, with the issuance of the International Financial Reporting Standards (IFRS) 17, which industry experts have called "the biggest shake-up of financial reporting for decades." IFRS creates a common global language for business, enabling easy understanding of company accounts across ... Read the full article
Specialty reinsurance premiums grow as traditional business takes a hit: Fitch
22nd May 2017
International financial services rating agency, Fitch Ratings, has highlighted a trend of non-life reinsurers moving into specialty lines, as they seek pockets of premium growth to offset stiff competition in more traditional business lines. Fitch Managing Director, Jim Auden, said industry competition had weakened market pricing significantly in the last three ... Read the full article
Reinsurer reserve redundancies continue to deteriorate
19th May 2017
Reinsurance market conditions have remained challenging in 2017 as the soft pricing environment persists, and analysts at Fitch Ratings have noted further deterioration of overall reserve redundancies across the non-life space, suggesting companies are less able to utilise reserves to bolster weak underwriting returns. The decline in reinsurance industry reserves has ... Read the full article
Terms & conditions show signs of weakening in 2017: Fitch
18th May 2017
The persistent soft reinsurance market environment is again resulting in the weakening of terms and conditions (T&Cs), as market participants increasingly utilise multiyear protection, extended hours clause, and the inclusion of risks that aren't fully understood by the industry, according to Fitch Ratings. Throughout the softening reinsurance market cycle there have ... Read the full article
Fitch predicts challenging year ahead with soft reinsurance market conditions
17th May 2017
Fitch Rating has set a negative forecast for the year ahead in its 2017 outlook report, predicting a continued decline of premium rates, with soft pricing prevailing in the global reinsurance market. The soft pricing is driven by a continued over demand of capital, sluggish reinsurance purchasing, and several years of below-average ... Read the full article
Profitability of U.S. commercial lines business increasingly challenged: Fitch
12th May 2017
International financial services rating agency, Fitch Ratings, has warned of declining profitability in the U.S. commercial insurance industry, driven by intense competition, reduced reserve strengthening and catastrophe losses. "Industry competition has weakened market pricing significantly in the last three years, gradually taking a toll on profitability, and it's unlikely we will ... Read the full article
Ogden rate cut a short-term hit to U.S. & Bermuda re/insurers’ earnings: Fitch
26th April 2017
International financial services rating agency, Fitch Ratings, expects U.S. and Bermudian insurers and reinsurers to adapt quickly to higher costs as a result of the recent cut to the Ogden discount rate in the UK, but does advise firms to set aside extra reserves for their UK exposures. The Ogden ... Read the full article
Demand for reinsurance in Japan set for growth: Fitch Ratings
3rd April 2017
Reinsurance cover demand in Japan is set for growth and is expected to be ceded to international reinsurance markets, according to FitchRatings analysts, as the country implements plans to expand its governmental residential insurance scheme - which has more than doubled its earthquake insurance limit since 2011. The Japanese government is ... Read the full article
North American P/C re/insurers’ operating earnings continue to fall: Fitch
29th March 2017
A continuation of low investment yields and underwriting deterioration combined with higher catastrophe losses in 2016 to further pressure the operating earnings of North American property/casualty (P/C) insurers and reinsurers, according to Fitch Ratings. In a new report, international financial services rating agency, Fitch Ratings, reviews the 2016 GAAP results for ... Read the full article
Structured reinsurance – the big growth opportunity: Fitch
20th March 2017
Amidst a "negative outlook" backdrop for the reinsurance sector, with Fitch expecting profitability to sink further this year, structured reinsurance has been highlighted as one of the few lighthouses for the strained industry, named by the rating agency as a reinsurance growth area for 2017. The surplus relief quota share reinsurance ... Read the full article
M&A more expensive as Asian reinsurers seek diversification: Fitch
17th March 2017
M&A activity became more competitive last year, with valuation multiples shooting up as Chinese and Japanese reinsurers follow international earning diversification strategies, according to Fitch's newly released study on reinsurance market trends. Fitch said valuation multiples for M&A activity had risen last year to nearly 2.0x due to the influx of Asian ... Read the full article
European reinsurers disciplined in a tough market: Fitch
17th March 2017
Large European reinsurers continued to show discipline in a very challenging marketplace and broader economic environment in 2016, as reserve releases declined and companies reported a reduction in renewed business, according to the latest European reinsurance market report from Fitch Ratings. The profitability of European reinsurers remained pressured throughout 2016, with Fitch ... Read the full article
Higher reinsurance costs expected after Ogden rate cut: Fitch
1st March 2017
UK motor insurers will likely face increased reinsurance costs after the government announced plans to reduce the Ogden discount rate from 2.5% to -0.75%, Fitch Ratings has warned. Although re/insurers likely to be affected by the rate have been proactive in preparing for the rate change, a drop to a negative ... Read the full article
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