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 trade credit insurers
31st March 2020
Moody’s Investors Service has revised its outlook for several trade credit insurers from stable to negative, due to the ongoing coronavirus (COVID-19) pandemic. The rating agency said that COVID-19 could negatively impact the performance of Atradius Credito y Caucion S.A. (ACyC), Compagnie Francaise d'Assurance pour le Comm. (Coface) and Clal Credit ... Read the full article
Japan, Korea insurers face ongoing risks from COVID-19: Moody’s
23rd March 2020
Despite low numbers of infections and low claims, Moody’s analysts believe insurers in Japan and Korea should expect to face business disruption and financial risk from the coronavirus outbreak, with further downside risk should infections rise significantly. Analysts say direct claims related to the coronavirus outbreak will come from two main ... Read the full article
European insurers’ coronavirus BI claims will likely be limited, Moody’s
20th March 2020
Moody’s is expecting insurers in the UK, France and Germany to face only moderate business interruption claims as a result of the coronavirus outbreak, as pandemic-related claims are excluded from most business interruption policies in all three countries. This follows a statement from the Association of British Insurers which explained that ... Read the full article
Coronavirus volatility to erode EMEA insurers’ capital: Moody’s
18th March 2020
Analysts at Moody’s believe that coronavirus-induced volatility in the financial markets could erode the capital of EMEA insurers in the short term, with low interest rates also set to add pressure over the coming quarters. A recent heat map produced by the rating agency identified these two factors as the key ... Read the full article
Bank rate cut to increase pressure on UK re/insurers: Moody’s
13th March 2020
Analysts at Moody’s Investors Service view the Bank of England’s (BoE) decision to cut its base rate to 0.25% as a credit negative for UK insurers. The cut, which is designed to offset the economic shock of the coronavirus (COVID-19) outbreak, is expected to increase pressure on the UK insurance sector’s ... Read the full article
Geopolitical tensions to weaken growth in GCC region: Moody’s
10th March 2020
Mounting geopolitical tensions and intense competition are set to weaken growth for re/insurers in the Gulf Cooperation Council (GCC) region, according to analysts at Moody’s. The rating agency said that GCC insurers are set to face moderate-to-high credit risk over the next 18 months due to tensions between the US and ... Read the full article
Rating agencies view Covéa takeover as beneficial for PartnerRe
5th March 2020
Rating agencies Fitch and Moody’s have said that they view the recently confirmed acquisition of PartnerRe by Covéa as potentially beneficial for the Bermudian reinsurer. Fitch has placed PartnerRe’s ratings on Rating Watch Positive after the news emerged yesterday, while Moody’s affirmed its ratings and noted that PartnerRe would likely ... Read the full article
Coronavirus impact currently minimal for US P/C firms, says Fitch
2nd March 2020
Currently, the ongoing coronavirus outbreak is not expected to have a meaningful adverse impact on the financial results of U.S. property/casualty (P/C) companies, nor their ratings, according to Fitch. The financial services ratings agency has said that a combination of the nature of insured commercial exposures and restrictive language embedded in ... Read the full article
Concentration of rising prices limits positive influence on profits: Moody’s
27th February 2020
Analysts at Moody's have said that the outcome of the January 1st, 2020 reinsurance renewals are in line with expectations, and, has noted that the concentration of price hikes is limiting any positive impact on profitability for market players. Financial services ratings agency, Moody's is the latest to comment on the ... Read the full article
Moody’s gives stable outlook for UK P&C sector
26th February 2020
Robust capital levels and good operating performance has helped the UK property and casualty insurance sector secure a stable outlook from Moody’s Investors Service. In a report published today, Moody’s notes that the sector has achieved an average operating margin of between 8% and 9% in recent years, while pre-tax profit ... Read the full article
Tesla shows smart carmakers well-placed as insurers: Moody’s
14th February 2020
After Tesla's Chief Executive Officer (CEO), Elon Musk, suggested recently that insurance is going to be a major product of the US electric vehicle manufacturer over time, analysts at Moody's have said that producers of smart cars are in a good position to offer insurance protection. Tesla, which already offers insurance ... Read the full article
UK motor claims inflation outpacing rate increases: Moody’s
11th February 2020
Analysts at Moody’s have reported that claims in the UK motor insurance sector are increasing at a faster pace than premium pricing, which is challenging the profitability of the market. According to the Association of British Insurers (ABI), the average comprehensive motor insurance premium paid in the UK during the fourth ... Read the full article
Coronavirus poses limited threat to Chinese insurers: Moody’s
4th February 2020
Analysts at Moody’s Investors Service believe that the ongoing coronavirus outbreak poses only a limited threat to the Chinese insurance sector, with disruption likely to stem mostly from broader economic impacts. The firm noted that Hubei, the province at the centre of the outbreak, only accounted for around 4% of domestic ... Read the full article
India’s slowing economy to weigh on re/insurers, says Moody’s
21st January 2020
While Moody’s Investors Service expects India’s slowing economy to hurt insurance premium growth over the next few years, a low 3.7% penetration rate alongside supportive measures put in place by regulators will help counterbalance the deterioration. Analysts note that GDP growth slowed to 6.8% in fiscal 2018 and could slow further ... Read the full article
Bushfire losses to rise but remain manageable, says Moody’s
9th January 2020
Moody's Investors Service has warned of a dent to profits from the ongoing bushfires ravaging parts of Australia, but says that the strong fundamentals of the region's property and casualty (P&C) insurers suggests that losses will be manageable. As of January 7th, 2020 the Insurance Council of Australia (ICA) had ... Read the full article
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