Reinsurance News
Fitch
Insurance sector not materially exposed to BI losses due to Russian gas standoff – Fitch
22nd July 2022
The insurance sector is not materially exposed to the business interruption losses that could arise due to a cut-off in Russian gas supplies to Europe, according to a statement by Fitch. Business interruption (BI) insurance policies typically only cover losses resulting from physical damage to business premises or production ... Read the full article
Fitch upgrades PartnerRe following acquisition by Covea
21st July 2022
Fitch Ratings has upgraded PartnerRe’s Issuer Default Rating (IDR) to 'A' from 'A-' and senior unsecured debt ratings to 'A-' from 'BBB+'. Fitch has also upgraded the Insurer Financial Strength (IFS) rating of Partner Reinsurance Company, the company's principal reinsurance operating subsidiary, to 'AA-' (Very Strong) from 'A+' (Strong), ... Read the full article
Volatility in Dutch insurers’ Solvency II ratio expected to increase: Fitch
15th July 2022
Analysts at Fitch Ratings have stated that they expect volatility in Dutch insurers’ Solvency II ratios to increase, due to the insurers’ exposure to fluctuating equity and real-estate prices, as well as widening credit spreads and potential credit deterioration. The impact, however, is more emphasised for insurers with less conservative investment ... Read the full article
Fitch appoints Hidalgo as Global Head of Insurance Industry Sales
14th July 2022
Fitch Ratings has appointed Augusto Hidalgo as Global Head of Insurance Industry Sales, where he will be based in London. Hidalgo made the announcement earlier this week on LinkedIn. With over 30 years of experience working within the industry, Hidalgo brings a strong level of expertise towards his new role. He joins from ... Read the full article
IFRS 17 not expected to affect insurers’ business models or credit ratings: Fitch
8th July 2022
Analysts at Fitch Ratings have stated that the first public comments from Dutch insurer – ASR, on the implications of IFRS 17 support Fitch Ratings’ view that the new standard will not affect insurers’ business models in the near term. The major European insurer said in an update last month ... Read the full article
Insurance fundamentals steady despite macro challenges: Fitch
1st July 2022
Analysts at Fitch Ratings have explained that their neutral sector mid-year outlooks for a vast majority of insurance sectors and regions reflect steady fundamentals across most markets despite the broadly challenging economic climate. In particular, Fitch expects non-life claims to continue to normalise after pandemic pressures, although costs are now rising ... Read the full article
MPLI market shows improvement, but remains unprofitable: Fitch
20th June 2022
Analysts at Fitch Ratings highlighted how results for the US medical professional liability insurance (MPLI) market improved significantly in 2021, reversing a four-year trend of weakening performance, but still, however, generating a 108% combined ratio. Segment performance is expected to further improve in 2022 due to earned premium growth related to ... Read the full article
“Insurance Capital Standard could augment the analysis of insurers’ capital” – Fitch
8th June 2022
Fitch Ratings says that the Insurance Capital Standard (ICS) could augment the analysis of insurers’ capital by serving as a comparator benchmark across geographies. The standard, due to be implemented globally by 2025, aims to provide a globally comparable risk-based measure of the capital adequacy of Internationally Active Insurance Groups (IAIGs). ... Read the full article
Hurricanes could challenge P&C industry this year, says Fitch
6th June 2022
A hurricane that hits land could present additional challenges to a P&C sector beset by inflation increases and the potential for stagflation, says Fitch in a new note. The firm said that natural catastrophe losses, particularly severe weather-related events, represent a major source of loss volatility, but capital levels of large ... Read the full article
P&C lines poised for favourable underwriting gains: Fitch
25th May 2022
Analysts at Fitch Ratings have reported that the underwriting performance of US property and casualty (P&C) insurance commercial sector lines is “poised for favourable underwriting gains in 2022,” barring outsized natural catastrophe losses. Commercial lines’ underwriting performance returned to profitability in 2021, with significant declines in both calendar-year loss and expense ... Read the full article
UK climate stress test is “toughest yet” for insurers: Fitch
24th May 2022
Analysts at Fitch Ratings have warned that the UK’s latest supervisory climate stress test for insurers is “the world’s toughest yet,” with many firms expected to fall below the minimum standards imposed. The BoE’s 2021 Climate Biennial Exploratory Scenario test explores the resilience of the UK financial system to the physical ... Read the full article
US cyber insurance payouts increase, amid rising claims: Fitch
19th May 2022
Analysts at Fitch Ratings have said, that cyber insurance has become the fastest growing segment for US property & casualty (P&C) insurers as evolving threats have “boosted” the demand for coverage, with insurers actively raising prices in response to rising claims. In the analysts latest report on the US cyber insurance ... Read the full article
“Four European reinsurers saw decline in profits in Q1 2022” – Fitch Ratings
16th May 2022
The decline in profits for four major European reinsurers is down to varying factors, says Fitch Ratings. The agency said that the Q! 2022 results for Munich re, Swiss Re, Hannover Re, and SCOR saw an average return on equity to 2.4% in 1Q22 from 7.4% a year ago. The firm also ... Read the full article
Ransomware attacks becoming a growing risk for US Corporates: Fitch
12th May 2022
With the frequency, severity and sophistication of ransomware attacks in the US rising dramatically in 2021 from the prior year, according to Fitch analysts, this trend is expected to continue as long as profit incentives remain high and outweigh perceived risks of criminal prosecution. In 2021 it was reported that there ... Read the full article
Fitch turns negative on SCOR
11th May 2022
Fitch Ratings has changed its outlook on SCOR from stable to negative, due to concerns that the reinsurer may not deliver a financial performance in line with its ratings over the next year to two years. At the same time, the rating agency affirmed the insurer financial strength (IFS) and long-term ... Read the full article