Reinsurance News
Moody’s news
News featuring rating agency Moody’s, including the latest reports, rating actions and analysis from the company, as well as news on Moody’s analysis of the reinsurance sector.
FRS 17’s CSM has loss absorbing characteristics, says Moody’s
6th February 2023
A report from Moody's Investors Service has suggested that IFRS 17’s Contractual Service Margin (CSM) has some loss-absorbing capacity similar to shareholders' equity, though this will vary among insurers. IFRS 17, the new insurance reporting standard which took effect in January 2023, introduced the concept of a CSM, a component of ... Read the full article
Moody’s remains stable on European life insurance & negative for P&C
31st January 2023
Moody's outlook remains stable for the European life insurance sector and negative for the property and casualty (P&C) sector, unchanged from the previous year. Analysts at Moody's have suggested that rising interest rates will support life insurers' profit margins and capital, though sales could decrease as the economy slows. The firm noted, ... Read the full article
Direct Line’s quota share reinsurance agreement a credit positive, says Moody’s
30th January 2023
Moody's has suggested that Direct Line's recently announced quota share reinsurance agreement will improve the firm's Solvency II capitalisation and is likely to better its returns over the medium term. Direct Line executed the strategic reinsurance arrangement via its principal underwriter, UK Insurance Limited on the 26th of January. Direct ... Read the full article
Moody’s RMS estimates $5-7bn in economic losses from California flooding
25th January 2023
Global catastrophe and risk modelling solutions firm, Moody’s RMS estimates total US economic losses from the recent California flooding to be between $5-7 billion. This estimate reflects inland flood impacts for the US, which includes damage to infrastructure. The insured losses are anticipated to be between $0.5-1.5 billion, including losses to ... Read the full article
Moody’s updates re/insurance rating methodologies for accounting changes
24th January 2023
Moody's Investors Service has published updated methodologies for rating life insurers, property and casualty insurers, reinsurers and trade credit insurers, replacing the versions published last year. According to Moody's adjusted rating methodologies, insurers reporting under IFRS or US GAAP may be subject to IFRS 17 or long duration targeted improvements (LDTI) ... Read the full article
Moody’s RMS Intelligent Risk Platform passes 100 clients landmark
20th January 2023
Catastrophe risk modeller Moody’s RMS has announced that over 100 active clients across insurance and finance markets have adopted applications and services on the Moody’s RMS Intelligent Risk Platform (IRP). According to the firm, the platform has gained significant traction among brokers, insurers, reinsurers, managing general agents (MGAs), and Lloyd’s syndicates ... Read the full article
Moody’s turns positive on Zurich citing improved profitability
17th January 2023
Moody’s has upgraded the Aa3 insurance financial strength rating (IFSR) and debt ratings (A1 senior unsecured, A2(hyb) subordinated, A3(hyb) preferred stock) of Zurich Insurance Company Ltd ., the insurers outlook has been changed to positive from stable. Moody’s upgrade and change in outlook reflect the company’s improved profitability, which the rating ... Read the full article
Reinsurers must seek new opportunities & reprice amid climate pressure: Moody’s
13th January 2023
While reinsurers have thus far managed to defend against a rising tide of natural catastrophe losses, more de-risking efforts, new opportunities and further re-pricing measures will all be required for the market to withstand the challenges of climate change, Moody’s says. In a new report, the rating agency notes that the ... Read the full article
Moody’s upgrades Talcott’s ratings, outlook remains positive
20th December 2022
Moody’s has upgraded the insurance financial strength (IFS) ratings of Talcott Resolution Life Insurance Company and Talcott Resolution Life and Annuity Insurance Company (TLA) to Baa2 from Baa3, the outlook of the Talcott entities remains positive. Moody's upgrade and continued positive outlook reflect the firm's view that recent large transactions along ... Read the full article
Global insurance outlook remains stable, says Moody’s
8th December 2022
The outlook for the global life insurance sector overall is stable as rising interest rates boost investment incomes for insurers and improve the profitability of guaranteed products, says Moody’s Investment Service in a new report. The firm said that life insurers' strong capital positions will help them weather a difficult operating ... Read the full article
Moody’s turns negative on global P&C sector
5th December 2022
Rating agency Moody’s has decided to change its outlook for global property and casualty (P&C) insurers to negative from stable, citing high claims inflation, the gradual return of claims frequencies to pre-pandemic levels, and rising reinsurance costs. With weaker economic growth and competitive pressures hindering insurers’ efforts to push through offsetting ... Read the full article
Financial leverage of European insurers rises to record high, says Moody’s
1st December 2022
A new note from Moody’s says that the financial leverage of Europe’s leading insurers rose to a record high of 28.2% on average in the first half of the year. The firm said that there had been a rise of 483 basis points over that time, with the increase reflecting a ... Read the full article
Interest rates reduce value of insurer securities: Moody’s
28th November 2022
A new note from Moody’s says that the movement of interest rates this year has reduced the carrying value of fixed income securities held by insurance companies. This, said Moody’s, has lowered reported equity for insurers that mark such securities to fair value. However, it said that its credit analysis focuses ... Read the full article
Net zero plans help insurers manage carbon transition risks: Moody’s
21st November 2022
According to a recent Moody's investor's service report, net zero objectives require considerable organisational focus and investment in measuring carbon transition risk, which in turn puts insurers in a better position to manage it. The most credible plans are based on robust and transparent frameworks, include measurable interim targets, and cover ... Read the full article
Moody’s turns negative on UK P&C
26th October 2022
Moody’s has downgraded its outlook on the UK property and casualty (P&C) insurance sector from stable to negative, reflecting the adverse impact of high inflation on underwriting profitability. The rating agency anticipates that P&C price increases and rising investment yields will be insufficient to restore earnings over the next 12-18 months. At ... Read the full article
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