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.
Moody’s turns negative on QBE after $1.5bn loss projection
21st December 2020
Rating agency Moody’s has changed its outlook on Australian re/insurer QBE from stable to negative, after the company forecast that its after-tax losses would amount to USD 1.5 billion over 2020. Analysts said that the downgrade reflects QBE’s earnings volatility, as well as its relatively weak earnings profile compared to ... Read the full article
Resilient profits underpin stable Chinese life outlook: Moody’s
21st December 2020
Moody's Investors Service has assigned a stable outlook to the Chinese life insurance industry for 2021, citing resilient profitability and capitalisation. Large recurring premiums, which reflects the industry's earlier efforts to shift its product focus to long-term regular premium policies, will also improve overall income stability, Moody’s said. And business growth could ... 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
2021 outlook for US life insurance remains negative: Moody’s
3rd December 2020
Moody's Investors Service released its annual report which shows the 2021 outlook for US life insurance remains negative. Due to the current macroeconomic conditions, the outlook is likely to continue into next year despite the gradual recovery of the global economy. Companies are still exposed to potential deterioration in the credit markets ... Read the full article
Moody’s gives stable outlook for insurance brokers in 2021
20th November 2020
Moody's has provided a stable outlook for insurance brokers in 2021, positively reflecting developing economic recovery and the industry's resilient business model. Insurance brokers are expected to maintain fairly stable Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margins and debt-to-EBITDA ratios, despite COVID-19 and the resulting economic disruptions of 2020. Moody's ... Read the full article
COVID-19 to impact the future of health insurance: Moody’s
19th November 2020
Analysts at Moody’s Investors Service believe that the COVID-19 pandemic will have a significant impact on the future of the health insurance industry. The report explains that Moody's-rated health insurers will need to adapt to certain changes in the next three to five years as it will be an important driver ... Read the full article
Moody’s provides stable outlook for US P&C in 2021
12th November 2020
Moody's has has provided a stable outlook for the US Property & Casualty commercial insurance sector in 2021. Analysts highlight an acceleration in price increases and solid capital positions. However these factors could be mitigated by headwinds from loss cost trends, catastrophes and coronavirus related losses "For commercial lines insurers, the coronavirus-related economic downturn ... Read the full article
Japanese ESG initiatives face legacy practice hurdles: Moody’s
12th November 2020
Analysts at Moody’s have argued that the adoption of environmental, social and governance (ESG) initiatives among Japanese property and casualty (P&C) re/insurers is a long-term positive, but that legacy assets and practices will create short-term hurdles. According to Moody’s the key environmental risk exposure for Japanese P&C re/insurers does not come ... Read the full article
COVID-19 has created significant challenges for EMEA insurers: Moody’s
20th October 2020
Moody’s Investors Service has released a report which shows how COVID-19 has impacted the global economic slowdown, creating significant challenges for EMEA insurers, whilst amplifying many existing key areas of concern. Analysts at Moody’s noted that along with low interest rates and asset quality risks, which are tilted to the downside, ... Read the full article
Negative outlook for UK life insurance: Moody’s
5th October 2020
Moody's Investors Service has placed a negative outlook on the UK life insurance sector amid concerns that a further decline in gilt yields could increase pressure on solvency levels. A new report by Moody's also noted how the shrinking UK economy is impacting sales of discretionary life insurance product, resulting in ... Read the full article
Moody’s warns of ratings downgrades for life re/insurers
5th October 2020
Moody’s has warned that US life re/insurers face the potential for rating downgrades due to pandemic-related exposures in their fixed income investment portfolios. The rating agency noted that many insurers have significant exposures in consumer sensitive sectors that have been heavily affected by coronavirus related shutdowns and laggard demand. Airlines, restaurants, lodging, ... Read the full article
2020 already third highest year for insured Cali wildfire losses: Moody’s
17th September 2020
At nearly $5 billion, 2020 is already the third-highest year for California insured wildfire losses behind 2017 and 2018, according to Moody’s Investors Service. In a new report, Moody’s says wildfires across California, Oregon, Washington and other western states have damaged or destroyed around 9,657 homes and commercial structures and burned ... Read the full article
P&C reinsurance buyers expecting 5% price rise off COVID-19, nat cat losses: Moody’s
11th September 2020
Respondents to a Moody’s survey of P&C reinsurance buyers are expecting reinsurance prices to rise by at least 5% next year. Reinsurers' profitability is generally anticipated to take a hit from factors such as COVID-19, more volatile natural catastrophe losses and capacity constraints. Over 90% of respondents had an expectation for price ... Read the full article
Utilising new tech key for life insurers post COVID-19: Moody’s
11th September 2020
Analysts at Moody’s Investors Service believe it will be the technologically advanced life insurers that will likely come out of the COVID-19 pandemic on top in terms of sales, revenue, and profit growth. Moody’s Vice President Laura Bazer says those with rigid product and business models could end up falling behind ... Read the full article
Reinsurer returns still insufficient relative to risk: Moody’s
9th September 2020
Despite reinsurance pricing having built much upward momentum over the course of the year, analysts at Moody’s remain adamant that the sector’s returns are still insufficient relative to risk. Speaking at a briefing alongside the release of Moody’s Global Reinsurance Outlook report, Vice President James Eck maintained that “much more rate ... Read the full article
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