Reinsurance News
Fitch
FCA measures could hit UK motor & home insurers’ profits: Fitch
9th October 2019
New measures proposed by the Financial Conduct Authority (FCA) following a report on competition in the UK motor and home insurance markets could impact profits in 2020, according to analysts at Fitch Ratings. Last week, the UK regulator raised concerns that competition was not working well for all consumers, estimating ... Read the full article
E&S premium growth up 15% as underwriting weakens: Fitch
7th October 2019
Direct written premiums in the US excess and surplus (E&S) lines market grew at a rate of 15% during the first half of 2019, a rate nearly double the overall property and casualty (P&C) market’s growth, according to analysts at Fitch Ratings. This compares with 2018, when premium growth of 11% ... Read the full article
D&O rates improve as carriers push to restore profitability: Fitch
30th September 2019
Premium pricing has improved significantly for directors and officers (D&O) liability in 2019 as carriers work to restore profitability, according to analysts at Fitch Ratings. Fitch noted that D&O liability business has seen several years of weaker performance, driven by flat premium growth and less favourable claims trends in a shifting ... Read the full article
AXA XL overtakes AIG as top D&O insurer: Fitch
26th September 2019
AXA XL has taken over from AIG as the leading directors and officers (D&O) insurer, now commanding a 15% market share, according to analysts at Fitch Ratings. Fitch noted that perennial market leader AIG has conceded significant market share over the last several years in an effort to reposition its book ... Read the full article
U.S. commercial auto sector set for another year of underwriting losses: Fitch
16th September 2019
The U.S. commercial auto sector is set to produce an underwriting loss for the ninth consecutive year in 2019, as market challenges continue to offset repeated underwriting and pricing actions, reports Fitch Ratings. The commercial automobile insurance space continues to drive substantial losses for U.S. property/casualty (P/C) insurers, recording a statutory ... Read the full article
Lloyd’s performance pressured, but corrective underwriting actions will help: Fitch
9th September 2019
The Lloyd’s of London insurance and reinsurance market remains under pressure as its underwriting performance has not lived up to expectations, but Fitch Ratings believes corrective actions taken will help. Speaking with Reinsurance News, Director of Insurance at Fitch Ratings Chris Grimes explained why the rating agency maintains a negative outlook ... Read the full article
Smaller reinsurers most vulnerable to takeover: Grimes, Fitch Ratings
6th September 2019
It is the smaller reinsurance firms that cannot take advantage of current market conditions and rate firming which are the most vulnerable to takeover right now, according to Chris Grimes of Fitch Ratings. Grimes, Director of Insurance at the rating agency, explained to us in an interview that despite the improved ... Read the full article
Low cat losses & improved pricing boost European reinsurers’ H1 results: Fitch
2nd September 2019
The big four European reinsurers reported solid underwriting performance during the first half of 2019, with results boosted by limited natural catastrophe losses and an improved pricing environment, according to Fitch Ratings. The rating agency pointed to growing momentum for positive premium rate development at the June/July renewals, as well as ... Read the full article
Court ruling on Prudential/Rothesay expected to disrupt de-risking plans: Fitch
28th August 2019
A recent UK High Court judgement to block Prudential's proposed £12 billion annuities transfer to Rothesay Life, is a sign that some insurers will likely have to retain business that they hoped to offload, warns Fitch Ratings. The proposed Part VII portfolio transfer from Prudential to Rothesay Life, which followed ... Read the full article
Lapse in reinsurance M&A as market conditions improve: Fitch
23rd August 2019
Mergers and acquisitions (M&A) activity in the reinsurance industry appears to be have been on hold through 2019 as improved market conditions have shifted the focus towards organic growth opportunities, according to Fitch Ratings. Analysts noted that 2018 and early 2019 were characterised by the completion of several substantial M&A deals, ... Read the full article
Asian reinsurers continue to grapple with intense competition: Fitch
22nd August 2019
Reinsurance companies in Asia continue to look at mergers and acquisitions (M&A) and access to alternative capital markets in order to offset intense competition, according to analysis by Fitch Ratings. In a new report, financial services rating agency Fitch notes challenges facing Asian reinsurers driven by high competition to negotiate improved ... Read the full article
Inadequate pricing & market disruption to push rate increases into 2020: Fitch
20th August 2019
Reinsurance rate increases are expected to continue into the 2020 renewals due to ongoing disruption in the market and inadequate pricing levels, according to Fitch Ratings. Fitch noted that reinsurance pricing turned decidedly positive at the mid-year 2019 renewals, following disappointing flat and generally stable rates at January. Momentum has largely been ... Read the full article
Fitch calls on BMA to address ambiguities in Tier 3 capital treatment
16th August 2019
As Bermuda continues to adapt and evolve in order to maintain its status as a desirable re/insurance domicile, Fitch Ratings has said that although development of the market is broadly positive, recent regulatory activity related to the treatment of Tier 3 capital for re/insurers raises some questions. Fitch notes that over ... Read the full article
U.S workers compensation set for fifth year of underwriting profit, says Fitch
18th July 2019
The US workers compensation market is on track for a fifth consecutive year of underwriting profits in 2019 despite a recent weakening in market fundamentals, according to Fitch Ratings. The rating agency noted that the industry’s statutory combined ratio fell to 86% in 2018, and has averaged 93% annually since 2015. "The ... Read the full article
Fitch says ReAssure ratings not affected by IPO suspension
15th July 2019
Fitch Ratings has said that its ratings for ReAssure have not been affected by Swiss Re’s decision to suspend the initial public offering (IPO) of its shares. Swiss Re chose to shelve the IPO of its UK closed life book consolidator business last week in response to adverse market conditions, ... Read the full article
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