Reinsurance News
Fitch
Rising claims & reinsurance costs set to erode the French non-life insurance sector: Fitch
1st February 2023
According to Fitch Ratings, rising claims and reinsurance costs due to persistent high inflation and climate change will erode underwriting margins in the French non-life insurance sector, most particularly within retail P&C where pricing dynamics are less favourable than in commercial P&C. Both government intervention and legislative changes also remain major ... Read the full article
Reinsurers’ underwriting margins expected to improve in 2023, says Fitch
10th January 2023
Fitch Ratings has released a report suggesting that reinsurers' underwriting margins after retrocession will expand by 4 percentage points on average in 2023. The rating agency noted that the global reinsurance industry reached a tipping point during the January 2023 renewals, as their bargaining power with regard to their cedents moved ... Read the full article
Market deviations reflect inflationary challenges for non-life sector: Fitch
10th January 2023
While the global outlook for the non-life insurance sector remains neutral, this classification belies the significant challenges faced by many developed markets as they feel the impacts of inflationary pressures, according to Fitch Ratings. The rating agency noted that these impacts will vary considerably by region and market, and even by ... Read the full article
US life insurer investment portfolios to withstand market volatility: Fitch
5th January 2023
Analysts at Fitch Ratings have stated that rising rates have been largely favourable for US life insurer investment portfolios, driving higher investment income as reinvestment rates exceed book yields. The rising rates have played a large role in helping to mitigate macroeconomic headwinds, market volatility and the heightened probability of mild ... Read the full article
US health insurers to withstand high inflation & interest rates in 2023: Fitch
3rd January 2023
According to analysts at Fitch Ratings, US health insurers should be able to withstand the effects of high inflation and rising interest rates, amid their expectations for a mild US recession in 2023. Fitch stated that the structural advantages afforded to health insurers within the broader healthcare system, business model diversification ... Read the full article
Canadian life insurers ratings driven by diversified business profile: Fitch
16th December 2022
The ratings of Canada’s life insurers are currently being driven by a highly diversified business profile and geographic diversification, according to a recent peer review by Fitch Ratings. The largest Canadian life insurers represent more than two-thirds of their domestic market. Considering their operating scale, earnings diversification, brand recognition and distribution ... Read the full article
Fitch downgrades SCOR ratings on weak profitability
7th December 2022
Fitch Ratings has downgraded its ratings on French reinsurer SCOR, citing continued weak financial performance, which has fallen short of the rating agency’s expectation for five year and has worsened this year. SCOR reported a net loss of €509 million for the first nine months of 2022, as natural catastrophe ... Read the full article
Rising rates slow issuance in 2022 for US & Canadian life insurers: Fitch
2nd December 2022
According to a new report by Fitch Ratings, both US and Canadian life insurers are heading into 2023 in solid shape, despite more volatile capital markets and higher inflation drying up issuance in recent months. In the report, Fitch notes that throughout 2020 and 2021, insurers in the US and Canada ... Read the full article
UK non-life outlook deteriorating: Fitch
30th November 2022
Analysts at Fitch Rating have warned that their sector outlook for the UK non-life company market in 2023 is deteriorating, while the outlook for the London insurance market sector remains neutral. The rating agency says that its diverging sector outlooks reflect the different credit profiles of these two subsectors of the ... Read the full article
QBE underwriting profits to dip on reinsurance costs & inflation: Fitch
25th November 2022
Analysts at Fitch Ratings have warned that the underwriting profitability of QBE Insurance Group is expected to moderate over the next six to 18 months due to inflationary pressure and higher reinsurance costs. Fitch affirmed its Long-Term Issuer Default Rating (IDR) of 'A-' and Insurer Financial Strength (IFS) Ratings of 'A+' ... Read the full article
Fitch assures P&C sector is “recession resilient” as headwinds mount
21st November 2022
Analysts at Fitch Ratings have assured that its analysts view the US property and casualty (P&C) sector as “recession-resilient,” if not totally “recession-proof,” as challenging economic conditions continue to mount. It is expected that the US economy is headed towards mild recession next spring, which Fitch suggests will yield “different outcomes” ... Read the full article
US midsize mutual life ratings supported by high capital levels: Fitch
16th November 2022
According to Fitch Ratings, the ratings for its midsize mutual life peer group continue to be supported by higher levels of capital relative to the broader life industry, reflecting the unique characteristics of mutual ownership. The rating agency suggests that compared with stock companies, these mutual insurers generally have a longer-term ... Read the full article
Italian non-life premiums up 6% as insurers shift from motor: Fitch
8th November 2022
Non-life premiums in Italy rose by 6% during the first half of 2022, according to data from Fitch Ratings, owing to strong growth in non-motor lines. Analysts note that Italian insurers have been increasing their exposure to non-motor in recent years to offset pressure on motor profitability, which still accounts for ... Read the full article
Fitch upgrades W.R. Berkley’s ratings
26th October 2022
Fitch Ratings has announced that it has upgraded W.R. Berkley Corporation’s property and casualty (P&C) operating subsidiaries Insurer Financial Strength ratings to ‘AA-‘ (Very Strong) from ‘A+’. At the same time, Fitch has also upgraded Berkley’s senior debt rating to ‘A-‘ from ‘BBB+’. The rating outlook is stable. Fitch stated that the ... Read the full article
Fitch ups insured loss range for Hurricane Ian to $35-55bn
17th October 2022
Analysts at Fitch Ratings have increased their estimate for re/insurance industry losses from Hurricane Ian to a range of $35 billion to $55 billion. The new range represents an increase on the estimate of $25 billion to $40 billion previously released by Fitch, although the earlier figures did apply to ... Read the full article