Reinsurance News
interest rates
Global insurance sector outlooks at risk from high inflation & rising interest rates: Fitch
16th September 2022
In a new report, Fitch Ratings has warned that insurance sector outlooks in several markets across the world could move to deteriorating if both high inflation and rising interest rates continue to persist beyond the rating agency’s latest forecasts. Analysts have analysed the potential impact of a conservative economic scenario with ... Read the full article
European insurance sector outlooks at risk from inflation, rising rates: Fitch
9th September 2022
According to Fitch Ratings, several European insurance sector outlooks could move to ‘deteriorating’ if high inflation persists and interest rate rises become more significant. In a recent study, Fitch analysed the potential impact of an economic scenario with mid-to-high single-digit inflation throughout 2023 and 10-year interest rates increasing by a combined ... Read the full article
Interest rate hikes beneficial to reinsurers: Goldman Sachs
30th August 2022
With interest rates having already risen across the UK and Europe and further hikes expected in the coming months, analysts at Goldman Sachs have predicted that higher interest rates will prove beneficial to reinsurance companies in the long term. Although interest rate growth could lead to lower investment income due to ... Read the full article
US personal lines rate increases plus 5.16% in Q2 2022
6th July 2022
US personal lines rates stabilised in the second quarter of 2022 with rate increases of plus 5.16%, according to analysts at MarketScout. This percentage almost mirrors the 5.2% increase in the first quarter of 2022, MarketScout noted. Insureds in the US are experiencing rate increases partly as a result of inflation on ... Read the full article
Goldman Sachs predicts short-term pain, long-term gain for reinsurers
27th June 2022
Goldman Sachs predicts that, the current economic situation will ultimately be beneficial for reinsurance companies. In the short-term, companies might see lower investment income due to negative impacts on realised gains. But in the long-term, rising interest rates are economically beneficial for reinsurance companies, and higher reinvestment yield leads ... Read the full article
AM Best maintains stable outlook on global reinsurance amid positive pricing momentum
8th December 2021
Heightened demand for protection, continued positive price momentum and a disciplined underwriting environment has seen ratings agency A.M. Best maintain its stable outlook on the global reinsurance industry. AM Best's latest reinsurance market segment report highlights some positive and negative factors for the sector as the new year edges closer. Underpinning the ... Read the full article
Interest rates & COVID shock behind negative European outlook: Moody’s
18th December 2020
Moody’s has said that prolonged low interest rates and the economic shock from the COVID-19 pandemic underpin its negative outlook on the European insurance sector. Interest rates have declined further in 2020 and Moody's expects them to remain low for some time to come. Low rates will reduce P&C insurers' investment income ... Read the full article
Need for creativity high amid challenging investment landscape: Prospectus 2021
26th November 2020
Although news around a potential COVID-19 vaccine is a positive step, the investment landscape remains extremely challenging for global re/insurers and there's a continued need for creativity and innovation, according to industry experts. On day two of Prospectus 2021, the audience heard from three very experienced investors whose firms ... Read the full article
Re/insurer investment market trends accelerated by COVID, say experts
16th November 2020
As insurers and reinsurers continue to adapt to the lower-for-longer interest rate environment, the arrival of the global COVID-19 pandemic has served to accelerate certain trends in the marketplace, according to industry experts. On the second day of Prospectus 2021 - the new annual re/insurance and insurance-linked securities (ILS) ... Read the full article
Credit risks accelerating for US insurers on COVID-19 fallout, warns Fitch
11th November 2020
Analysis by Fitch Ratings warns that insurance companies in the U.S. are facing accelerated credit risks as a result of the economic fallout from the ongoing COVID-19 pandemic. Fitch is expecting longer-term credit implications for U.S. insurers that stretch beyond its three to five-year ratings horizon. The lower for longer interest rate ... Read the full article
Global P&C premiums to rebound by 3.8% in 2021: Swiss Re’s Haegeli
13th October 2020
After a moderate reduction in global non-life insurance premium growth this year, owing to the ongoing pandemic, Swiss Re Institute expects global property and casualty (P&C) premiums to rebound strongly by 3.8% in 2021. Recent analysis by Swiss Re's Group Chief Economist, Jerome Haegeli, explores the potential for non-life insurance market ... Read the full article
“Timid” price increases not enough to cover exposure, says Swiss Re
11th September 2020
Executives at reinsurer Swiss Re have said that further rate improvements are needed after "timid" price increases across the reinsurance sector, which have ultimately failed to compensate for years of premium decline and the elevated claims load. Addressing the media this week as part of Swiss Re's virtual Rendez-Vous de Septembre ... Read the full article
Swiss Re expects rate hardening to continue; sees underwriting discipline as key
8th September 2020
Reinsurance giant Swiss Re expects to see further rate hardening across all lines of business at the upcoming renewals, driven by a combination of the low interest rate environment and the need to cover rising loss trends. Further rate hardening in reinsurance is expected on the back of price improvements in ... Read the full article
“Undisputed” re/insurance market hardening to persist: Jeworrek, Munich Re
7th September 2020
Re/insurance market hardening, in relation to price increases and renewed discussions around terms and conditions (T&Cs), is expected for "probably the next two years, or even a bit longer," according to Torsten Jeworrek, Chief Executive Officer (CEO) of Reinsurance at Munich Re. With the annual, September meeting of the reinsurance industry ... Read the full article
Low interest rates add pressure to European re/insurers: Moody’s
3rd July 2020
According to Moody’s, the profitability of European property and casualty (P&C) re/insurers will come under increasing pressure as interest rates are set to stay low for longer than previously expected amid the slowdown in global growth. With government bond yields falling in 2020, P&C re/insurers are also being forced to reinvest ... Read the full article
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