Reinsurance News
Losses
News on catastrophe and man-made losses that impact or could impact the reinsurance industry and reinsurers around the globe.
Supply chains threatened as Suez disruption continues
26th March 2021
Analysts have warned that the ongoing blockage in the Suez Canal is likely to have significant repercussions for global supply chains, which have already been under strain since the outbreak COVID-19 pandemic. Figures from Euler Hermes, a trade credit subsidiary of Allianz, show that for each day the disruption continues, global ... Read the full article
IAG’s FY21 nat cat claims to exceed allowance on rainfall / flooding
26th March 2021
Australian insurer IAG has announced estimated FY 2021 net natural perils claim costs of between AUD 660 million to AUD 700 million compared to its perils allowance of AUD 658 million, as claims continue to come in for the widespread flooding in New South Wales (NSW) and Queensland. Earlier this month, ... Read the full article
Industry costs from Suez obstruction to exceed $100m: McGill & Partners
25th March 2021
Analysts at specialist broker McGill and Partners believe that the re/insurance industry could be looking at costs in excess of $100 million due to the ongoing obstruction in the Suez Canal. The vital trade waterway through Egypt has been blocked by a grounded ship since Tuesday, resulting in a backlog of ... Read the full article
Suez Canal blockage could drive $40bn in trade disruption: analysts
24th March 2021
The Evergreen container ship currently blocking the Suez Canal after plunging one of the world’s busiest trade routes into chaos could be carrying goods worth $89 million and threatens to create more than $40 billion dollars of trade disruption, according to analysis from Russell. Reports on the still-unfolding event say rescue ... Read the full article
Cat losses running 20% above average this year: Jefferies
19th March 2021
Analysts at Jefferies have estimated that insured catastrophe losses year-to-date are running at around 20% above the long-term average, or 34% above the 10-year average. Looking at the month of February alone, catastrophe losses are 59% above the long-term average, Jefferies says, with winter weather accounting for 97% of the insured ... Read the full article
Progressive in $40mn reinsurance recovery for US winter storms
17th March 2021
The Progressive Corporation, a provider of personal and commercial insurance throughout the U.S., recorded a $40 million reinsurance recoverable in February owing to damages caused by the severe winter weather across southern parts of the country. During the month, Progressive recorded catastrophe losses of $87 million, resulting in a net catastrophe ... Read the full article
Munich Re puts US winter storm loss in the mid-hundreds of millions
17th March 2021
Global reinsurance giant Munich Re has said that it currently expects claims expenditure from the severe winter weather conditions that affected the U.S. last month to reach the mid triple-digit million euro range. Winter storm Uri resulted in significant disruption across a number of southern U.S. states in February, especially Texas, ... Read the full article
Uri could signal above-average cat loss year: Barclays
15th March 2021
Analysts at Barclays believe that the unprecedented level of losses caused by February’s Winter Storm Uri in the US could be “setting the stage” for another above-average catastrophe year for re/insurers. Current industry loss estimates put the cost of Uri in the $15 billion to $18 billion range, which Barclays notes ... Read the full article
Talanx falls to underwriting loss on €2.1bn of large losses
15th March 2021
Talanx, the parent of major European reinsurance company Hannover Re, has reported an underwriting loss of €2.8 billion for 2020 amid total large losses of a significant €2.1 billion, driven mostly by the coronavirus pandemic. The company's underwriting performance deteriorated further from the €1.8 billion loss reported in 2019, as the ... Read the full article
US winter weather to exceed $10bn loss: Aon
12th March 2021
Re/insurance broker Aon has estimated that the total economic cost of the severe winter weather conditions the affected the US last month will exceed $10 billion. Aon’s figure considered the economic cost of damages and net-loss business interruption for the period of February 12th to 20th, which will likely be the ... Read the full article
Hannover Re’s income robust but large losses (COVID) dent underwriting result
11th March 2021
Global reinsurer Hannover Re has outperformed its Group profit guidance of more than €800 million for 2020 despite the significant impacts of the COVID-19 pandemic, which, alongside other large losses pushed the firm's property and casualty (P&C) combined ratio into unprofitable territory. Group net income declined from the €1.3 billion posted ... Read the full article
Hiscox falls to 2020 loss on COVID-19 reserves
3rd March 2021
COVID-19 reserves of $475 million, net of reinsurance, has pushed insurer and reinsurer Hiscox to a loss of $268.5 million for full-year 2020, against income of more than $53 million in 2019. The majority of the company's pandemic claims relate to event cancellation business, with the second largest chunk concerning business ... Read the full article
Reinsurance will help insurers absorb unusually severe storm Uri losses: S&P
1st March 2021
Early insured loss estimates for the unusually severe winter storm Uri in the United States appear significant, but carriers should be able to absorb the shock thanks to robust capital levels and reinsurance protection, according to S&P Global Ratings. Winter storm Uri has caused significant disruption across a number of southern ... Read the full article
AIR says winter storm Uri industry loss likely to exceed $10bn
26th February 2021
The damaging impacts of winter storm Uri and associated severe winter weather in the U.S. is expected to result in an insurance and reinsurance industry loss of more than $10 billion, according to catastrophe risk modeller AIR Worldwide. The winter storm arrived on the country’s President’s Day weekend bringing damaging ice ... Read the full article
Munich Re’s profit falls in 2020; P/C combined ratio deteriorates on major losses
25th February 2021
German reinsurer Munich Re has reported profit of €1.211 billion and €212 million for the full-year and fourth-quarter 2020, respectively, in spite of a substantial level of claims related to major losses and the ongoing COVID-19 pandemic. For the year, profit fell from the more than €2.7 billion reported a year ... Read the full article