Reinsurance News
Fitch
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
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
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