Reinsurance News
Fitch
Underwriting losses continue for U.S Medical Professional Liability: Fitch
16th October 2018
The U.S Medical Professional Liability Insurance (MPLI) sector has experienced underwriting losses for a second consecutive year, posting a combined ratio of 102% in both 2016 and 2017, according to a new report by Fitch Ratings. Calendar-year results in MPLI continue to benefit from favourable loss reserve development, which averaged 20% ... Read the full article
Re/insurer’s IFS ratings unlikely to face adverse impacts from Michael: Fitch
12th October 2018
While hurricane Michael will add to the insured catastrophe losses accumulated thus far this year and push 2018 closer to a more normal catastrophe loss year, re/insurer's individual Insurer Financial Strength (IFS) ratings are unlikely to face adverse impacts, according to Fitch. Fitch believes the property/casualty re/industry is well positioned to absorb ... Read the full article
Reinsurance M&A to continue, driven by alternative capital access: Fitch
4th October 2018
Mergers and acquisitions (M&A) activity in the reinsurance industry is expected to continue, driven in part by a desire for companies to gain better access to alternative capital platforms, according to Fitch Ratings. Consolidation provides a range of potential benefits for reinsurers, including revenue diversification, economies of scales, improved return on ... Read the full article
U.S. life insurers experience improved profitability in 2018: Fitch
27th September 2018
Approximately two-thirds of publicly traded life insurers in the U.S. rated by Fitch improved profitability in the first-half of 2018, and while higher interest rates will mitigate spread compression, the rating agency warns that this will remain a headwind in the second half of the year. For the U.S. life insurers ... Read the full article
Pricing will remain flat at 1/1 renewals: Fitch Ratings
25th September 2018
Although reinsurance pricing improved to some extent over 2018, abundant levels of underwriting capacity continue to absorb any increase in reinsurance demand, meaning rates are not expected to improve significantly at 1 January 2019 renewals, according to Fitch Ratings. Rates improvements were greatest at the January renewals in 2018, but subsequent ... Read the full article
NFIP will absorb majority of Florence losses, says Fitch
20th September 2018
Traditional reinsurers and insurance-linked securities (ILS) markets are expected to experience only modest levels of losses from Hurricane Florence, with the majority likely to be absorbed by the National Flood Insurance Program (NFIP), according to Fitch Ratings. Florence weakened to a Category 1 hurricane as it approached the U.S coast last ... Read the full article
U.S Excess & Surplus lines recovery boosts P&C insurers: Fitch
14th September 2018
U.S Property & Casualty (P&C) insurers with significant operations in Excess and Surplus (E&S) lines are set to receive a boost as the U.S E&S market continues its modest recovery, according to a recent report by Fitch Ratings. The E&S business is typically more volatile than standard admitted insurance markets and ... Read the full article
Fitch revises global reinsurance sector outlook to stable
4th September 2018
Global ratings agency Fitch has revised its outlook for the global reinsurance sector from negative to stable in response to a new market normal, underlined by more modest returns on capital but less volatility than before. Fitch Ratings says that in recent years there has been a secular shift that has ... Read the full article
Asian reinsurers remain profitable over 2017 despite market softening: Fitch
7th August 2018
Asian reinsurers in catastrophe-prone countries remained profitable over 2017 despite continued market softening thanks to effective risk management, favourable loss-reserve development, and limited catastrophe events, according to a new report by Fitch Ratings. Fitch found that big reinsurers in China, Japan and Korea recorded favourable profitability with return on equity (ROE) ... Read the full article
Reinsurance demand to grow in Asia, although untapped markets remain: Fitch
3rd August 2018
Reinsurance demand is expected to grow significantly in Asia due to accounting reforms, large infrastructure projects, and technology, while considerable opportunities and challenges remain in closing the region’s vast protection gap, according to a new report by Fitch Ratings. Fitch noted that the implementation of IFRS 17 - new international accounting ... Read the full article
Fitch suggests large reinsurers can better withstand market challenges
10th July 2018
Fitch Ratings recently affirmed its stable outlook and ‘AA-‘ Insurer Financial Rating (IFR) for European reinsurance giants Swiss Re and SCOR, reasoning that the scale of the companies allows them to better withstand current market challenges. The rating agency recognised that both companies currently had very strong business profiles within the ... Read the full article
U.S P&C earnings volatile following equity accounting changes: Fitch
27th June 2018
Re/insurance companies that report under U.S Generally Accepted Accounting Principles (GAAP) may be subject to earnings volatility over 2018 due to a change in accounting for equity securities, according to Fitch Ratings. In an effort to promote convergence with international accounting practices, from January 1, 2018, companies have had to recognise ... Read the full article
U.S P&C personal lines losses rise for fourth straight year: Fitch Ratings
25th June 2018
Underwriting losses in the U.S P&C personal lines segment grew for the fourth consecutive year in 2017, according to a new report by Fitch Ratings. The industry statutory personal lines combined ratio rose to 103.8% in 2017 despite continued favourable written premium growth and moderate improvement in the personal auto segment, ... Read the full article
U.S P&C sector well prepared for 2018 hurricane season: Fitch
8th June 2018
U.S Property and Casualty (P&C) re/insurers are well prepared for the 2018 hurricane season, which is expected to return to normal levels following an extremely active 2017 season, according to Fitch Ratings. The rating agency concluded that U.S insurers are well positioned to withstand a future significant catastrophe event in 2018, ... Read the full article
Irma showed the robustness of Florida specialists’ reinsurance utilisation: Fitch
6th June 2018
After the impact of hurricane Irma, primary Floridian insurance companies reported fairly limited losses when compared with the volume assumed by the global reinsurance segment, with many primary players reporting that overall losses fell well within their respective reinsurance programmes, reports Fitch. The ratings agency reports that a notable lack of ... Read the full article
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