Reinsurance News
Fitch
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
U.S. commercial insurance lines well placed for further improvement: Fitch
18th June 2019
U.S. commercial insurance lines stand a good chance of improving further in 2019 on the back of 5% sector growth in 2018, so long as unusually large catastrophe losses are avoided and pricing trends remain favourable, says Fitch Ratings. A new report by international financial services ratings agency, Fitch Ratings, states ... Read the full article
P&C insurers positioned well as Atlantic hurricane season gets underway: Fitch
3rd June 2019
Despite significantly elevated levels of catastrophe losses in both 2017 and 2018, analysts at Fitch Ratings state that increased policyholders' surplus during this period supports its view that U.S. property and casualty (P&C) insurers are well placed to manage a significant landfalling storm. The 2019 Atlantic hurricane season officially started on ... Read the full article
Majority of U.S. non-life re/insurers’ ESG risk level unlikely to influence rating: Fitch
16th May 2019
Within Fitch's group of 24 Fitch-rated issuers, very few U.S. non-life insurers and reinsurers reach an Environmental, Social and Governance (ESG) risk level that suggests an influence on the rating, reports the ratings agency. Fitch states that 96% of ESG scoring distributions have no impact for its universe of rated-issuers, with ... Read the full article
U.S P&C insurers’ financial leverage remains stable: Fitch
13th May 2019
U.S property and casualty (P&C) insurers’ financial leverage remained stable year-on-year, according to Fitch Ratings, who recorded the sector’s aggregate financial leverage ratio (FLR) at 'A-'. Fitch explained that the ratio implied debt rating guidelines at 22.6% for year-end 2018, which was down minimally from 22.9% at year-end 2017. "In the medium ... Read the full article
Carriers better able to estimate loss costs after AOB reform: Fitch
29th April 2019
Fitch Ratings believes that insurance carriers in Florida will be able to better estimate loss costs following the passage of a new bill designed to curtail unnecessary litigation and assignment of benefits (AOB) abuse in the state. The reforms will limit the ability of third-party service vendors to take advantage of ... Read the full article
Fitch places Sirius on Rating Watch Negative as CMIG debt and liquidity issues deepen
24th April 2019
Fitch Ratings has placed Sirius International Group Ltd.'s ratings on Rating Watch Negative, driven by a deepening debt and liquidity crisis at China Minsheng Investment Group Corp. (CMIG), which ultimately owns roughly 80% of Sirius' common shares on a fully diluted economic basis. The ratings include Sirius' 'BBB' Long-Term Issuer Default Rating, ... Read the full article
Underwriting profitability of London market remains pressured, warns Fitch
9th April 2019
Fitch Ratings has maintained its negative sector outlook on the London insurance market, citing continued pressure on profitability as catastrophe events hit underwriting performance and expense ratios remain high. The global financial services ratings agency highlights the negative impact of catastrophe losses and low investment returns on the results of London ... Read the full article
North America P&C sector results improve despite cat losses: Fitch
5th April 2019
North American property and casualty (P&C) re/insurers generated improved operating returns and underwriting profits in 2018, according to Fitch Ratings. Analysis of 48 P&C re/insurers’ results showed that performance across the sector improved despite a second consecutive year of higher than average catastrophe losses. Insured cat losses represented 5.0% of aggregate net ... Read the full article
Workers’ comp business ripe for insurtech innovation: Fitch
31st January 2019
The workers’ compensation segment of the property and casualty (P&C) re/insurance sector is a prime target for technology investment, according to analysts at Fitch Ratings. Analysts noted that, while it is currently enjoying a fourth consecutive year of market underwriting profits, the workers’ compensation business has historically suffered from large losses, ... 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
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