Reinsurance News
Hurricane Ian
Insured cat losses nearly at $100bn already in 2022: Aon
19th October 2022
Re/insurance broker Aon has reported that year-to-date economic losses, including preliminary estimates for Hurricane Ian, are already at $277 billion year-to-date, of which $99 billion is expected to be covered by public and private insurers. The firm’s latest Global Catastrophe Recap shows that global natural disaster losses by the end of ... Read the full article
Arch sees Q3 2022 cat losses of up to $560 million
19th October 2022
Bermuda-based carrier Arch Capital Group Ltd. has announced pre-tax catastrophe losses of $530 million to $560 million in the third quarter of 2022, net of reinsurance and reinstatement premiums, across its property casualty (P&C) insurance and reinsurance arms. The re/insurer expects its Q3 2022 results to be negatively impacted by hurricane ... Read the full article
Reinsurers facing heavy losses from Hurricane Ian: Moody’s
18th October 2022
A new report from Moody’s says that reinsurers will face heavy losses arising from Hurricane Ian, which has battered the US state of Florida in recent weeks. The report says that, given the severity of losses, primary insurers will share a significant part of the loss burden with traditional reinsurers and ... Read the full article
Swiss Re expects Q3 net loss amid hurricane Ian claims of $1.3bn
18th October 2022
Global reinsurance giant Swiss Re expects to report a net loss of $500 million for the third quarter of 2022 on the back of hurricane Ian related claims of a huge $1.3 billion, net of reinsurance and before tax. Swiss Re is the first large, global reinsurer to announce its preliminary ... 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
Florida’s litigation environment & social inflation will boost Ian losses: Moody’s
17th October 2022
According to a report from Moody's, Hurricane Ian will inflict a heavy toll on Florida-only insurers, which have already been struggling with poor profitability, high claims litigation costs, weak capitalisation, inflation, and increased reinsurance costs in recent years. Florida-only players will bear outsized losses from Ian given their business concentration in ... Read the full article
KBRA downgrades United’s P&C unit after Ian losses
17th October 2022
KBRA has downgraded its ratings for United Insurance Holdings Corp.’s (UPC Insurance) property and casualty (P&C) subsidiary in the wake of Hurricane Ian and after United announced it will incur $36.4 million of Q3 losses from the storm. The rating agency has downgraded the insurance financial strength rating (IFSR) for ... Read the full article
Hurricane Ian a potential capital event for reinsurers, says KBRA
14th October 2022
Analysts at KBRA have said that Hurricane Ian could result in a capital impact to some reinsurers, depending on the ultimate magnitude of their losses from the event. The firm said that “all insurers with exposure” in the areas affected by Ian will experience "at least an earnings impact,” but stressed ... Read the full article
Citizens warns policyholders of fraud as Hurricane Ian repairs begin
14th October 2022
Citizens Property Insurance has released a statement urging its policyholders recovering from Hurricane Ian to protect themselves from fraud and abuse by contacting their agent or Citizens first as they work through the recovery process. The company states that unscrupulous contractors and repair companies thrive in the frenzied days following any ... Read the full article
RLI estimates losses from Hurricane Ian to land between $38m and $42m
14th October 2022
Specialty insurer RLI is estimating its pre-tax catastrophic losses arising from Hurricane Ian will fall somewhere between $38m and $42m. This figure, the firm said in a statement, will be reflected in Q3 2022. It added that this range is net of reinsurance and subject to change due to the complexity ... Read the full article
AXA XL expected to produce underwriting profit despite Hurricane Ian losses
14th October 2022
AXA XL is expected to produce an underwriting profit despite losses caused by Hurricane Ian, according to a recent report by analysts at JP Morgan. Ahead of the release of the third quarter Activity Indicators on 2nd November JP Morgan is lowering its underlying earnings estimates for AXA by ~2%-6% over ... Read the full article
Citizens CEO estimates Hurricane Ian losses to be ~$40bn
14th October 2022
The CEO of Citizens Property Insurance has said his best estimate for losses arising from Hurricane Ian to be around $40bn. Keefe, Bruyette, & Woods (KBW) says in a new note that it sat with Barry Gilway, CEO of Citizens Property Insurance, to discuss the impact of Hurricane Ian on the ... Read the full article
Moody’s predicts liquidity and capacity squeeze following Ian losses
14th October 2022
In a new report, analysts at Moody’s have warned of the potential for pressure on both insurer liquidity and the availability of reinsurance and ILS capacity, following heavy losses from Hurricane Ian in Q3. Moody’s notes that Florida-only property insurers manage their hurricane exposures through the extensive use of property catastrophe ... Read the full article
Data suggests Demotech rated carriers have sufficient reinsurance for Ian claims
14th October 2022
Rating agency and financial analysis firm, Demotech, Inc., has reported that, at this stage, all of the Florida-focused insurance carriers it rates will be able to handle claims from hurricane Ian within their reinsurance towers, based on early reporting and cat modelling results. Of course, the ultimate insurance and reinsurance industry ... Read the full article
Strong performance in 2023 critical after Ian losses, warns Jefferies
13th October 2022
Analysts at Jefferies have warned that it is “critical” that insurers and reinsurers exhibit a strong performance in 2023, following the huge impact of Hurricane Ian on the market. Jefferies notes that the investor reaction to Ian has been relatively benign, even as the re/insured loss forecasts have surged from an ... Read the full article
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