Reinsurance News
Fitch
Reinsurance property market to harden into 2024 and beyond, says Fitch
24th August 2023
Fitch Ratings expects reinsurance property market hardening to persist into the January 2024 renewals and beyond, although expects a deceleration when compared with 2023 as analysts feel that rate adequacy has generally been reached. The conditions are driven by the continued supply/demand imbalance as reinsurers hold firm to maintaining underwriting discipline, ... Read the full article
Global non-life reinsurers report robust mid-year underwriting profits in 2023: Fitch
24th August 2023
In a reassuring turn of events, the mid-year results for global non-life reinsurers in 2023 have showcased robust underwriting profits, according to Fitch Ratings. The 18 non-life reinsurers under Fitch's scrutiny have collectively achieved an impressive reinsurance combined ratio of 88% during the first half of the year. This figure takes ... Read the full article
European reinsurers report strong 1H23 results amid improved pricing & investments: Fitch
22nd August 2023
The leading European reinsurers, including Hannover Re, Munich Re, SCOR SE, and Swiss Re, have unveiled robust financial results for the first half of 2023, marking a sharp contrast to the challenges faced in the same period last year, according to Fitch's report titled "European Reinsurers: 1H23 Results." The resurgence in ... Read the full article
UK life sector profitability set to be impacted by new consumer rules: Fitch
18th August 2023
New rules that are requiring for UK financial services companies to show that their prices represent fair value to customers negatively affect life sector profitability. Fitch Ratings says that it expects the rules introduced as part of the Financial Conduct Authority’s (FCA) consumer duty package, to lead some insurers to reduce ... Read the full article
Sri Lanka’s debt restructuring plan likely to reduce investment risk for insurers
7th August 2023
Investment and liquidity risk is likely to decrease for insurers in Sri Lanka, whose ratings are already under watch, due to the country’s new debt restructuring plan, according to Fitch Ratings. “Fitch expects pressure on insurers' investment and capital profiles to ease as the proposed plan will not have direct impact ... Read the full article
Prudential Financial transactions set to have favorable long-term impact: Fitch
3rd August 2023
Following the recent news that Prudential Financial, Inc., has entered into an agreement to reinsure $12.5 billion of in-force guaranteed universal life policies with Somerset Re, Fitch Ratings has confirmed that it views the announcement as being broadly credit neutral over the near term. The $12.5 billion block of business ... Read the full article
Fitch upgrades ARC’s credit ratings with stable outlook
13th July 2023
Fitch Ratings has upgraded African Risk Capacity (ARC) Limited’s Insurer Financial Strength (IFS) to 'A-' from 'BBB+' and Long-Term Issuer Default Rating (IDR) to 'BBB+' from 'BBB'. ARC's outlooks are Stable. The credit rating agency said that this upgrade is based on key rivers of developmental progress, sponsor support, product diversification ... Read the full article
Mass lapse remains a threat to European life insurers: Fitch
5th May 2023
Analysts at Fitch Ratings have warned that mass lapse risk remains a threat to European life insurers, although they argue that liquidity profiles are still sufficiently strong to withstand a moderate to significant rise in lapses even in the two most exposed markets, France and Italy. Lapse risk typically applies to ... Read the full article
Swiss P&C insurers expected to maintain strong profitability in 2023/24: Fitch
26th April 2023
A new report from Fitch Ratings has highlighted how Swiss property & casualty (P&C) insurers will maintain their strong profitability throughout 2023 and 2024, due to disciplined pricing strategies that mitigate the effects of higher claims inflation. According to analysts, the non-life market - which includes health - average combined ratio ... Read the full article
Fitch turns positive on Reinsurance Group of America
6th April 2023
Fitch Ratings has revised Reinsurance Group of America’s outlook to positive from stable and has also affirmed its senior debt ratings at 'BBB'. The agency also announced that it has affirmed RGA Reinsurance Company's (RGA Reinsurance) IFS rating at 'A' (Strong). Fitch says that this outlook revision reflects RGA’s business profile improvement ... Read the full article
European reinsurers’ life business units profitability improved in 2022: Fitch
5th April 2023
The life reinsurance business units of the four major European reinsurers have presented a strong return to profitability in 2022 as pandemic-related claims declined and the overall claims experience was positive, according to Fitch Ratings. Even though pandemic-related claims still burdened 1Q22 results, on average, Covid-19-related claims declined to 3.3% in ... Read the full article
French earnings diverge between life & non-life: Fitch
4th April 2023
Analysts at Fitch Ratings have estimated that the operating profits of French insurers increased by around 3% in 2022, despite broadly flat premium income, although the life and non-life segments showed diverging trends in their results. Fitch observed strong growth in life operating earnings that reflects higher technical margins, due to ... Read the full article
German public-sector insurer profits hit by reinsurance prices, claims inflation: Fitch
17th March 2023
According to analysts at Fitch Ratings, German public-sector insurers’ non-life underwriting profitability is likely to weaken in 2023, which will be driven by higher reinsurance prices and claims inflation. Fitch noted that it forecasts a net combined ratio of 98% for 2022 and 99% for 2023, compared with a five-year average ... Read the full article
Reinsurers expected to absorb majority of Turkey quakes losses: Fitch
9th February 2023
According to Fitch Ratings, reinsurers are expected to absorb the majority of the recent Turkey / Syria earthquake losses, although the amount will be insignificant given how low insurance penetration is in the regions. On February 6, 2023, two powerful earthquakes of more than 7.5 magnitude struck near the south-eastern ... Read the full article
Cyber ILS deals a “stepping stone” to market acceptance: Fitch
3rd February 2023
Analysts at Fitch Ratings have said that the two recent public announcements of cyber risk transference by re/insurers to the capital markets through insurance-linked securities (ILS) issuances represent the potential for a broader reinsurance source for the risk. While development of the cyber risk transfer market requires further maturation of the ... Read the full article