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 cautions European insurers against pursuing more illiquid assets
30th May 2019
Moody’s expects European insurers to continue allocating more of their investment portfolios to illiquid assets over the next 12-18 months as they seek higher yields. However, the rating agency notes that the outlook for illiquid asset classes is variable, and predicts a deterioration in the credit quality of some illiquid assets, ... Read the full article
IFRS 17 won’t change insurers’ underlying economic position: Moody’s
29th May 2019
While the introduction of IFRS 17 in 2022 will transform insurance accounting, it won’t change insurers’ underlying economic position, according to analysts at Moody’s Investors Service. Furthermore, while the new accounting standard is unlikely to affect Moody's view of their creditworthiness, it may make their performance more transparent and shape their ... Read the full article
Closed book deals to drive consolidation in European sector: Moody’s
23rd May 2019
Moody’s Investors Service expects to see further consolidation in the European re/insurance sector, driven in particular by an uptick in closed book deals as low interest rates continue to pressure margins. Analysts noted that low interest rates have pressured margins on UK annuities and German traditional savings products with guaranteed rates. Therefore, ... Read the full article
Lloyd’s modernisation plans entail high execution risk: Moody’s
9th May 2019
The modernisation reforms proposed by insurance and reinsurance market Lloyd’s of London are credit positive, according to analysts at Moody’s, but will be subject to a high degree of execution risk due to the substantial investments and cultural changes required. The plans, which aim to reduce the cost of doing business ... Read the full article
Heightened reinsurance use supports Japanese P&C players’ strong capitalisation: Moody’s
18th April 2019
Strong internal capital generation combined with an increased utilisation of reinsurance is expected to support the capitalisation of property and casualty (P&C) insurers in Japan over the next 12-18 months, reports financial services ratings agency, Moody's. Moody's maintains a stable outlook for Japanese P&C insurers, noting that capitalisation amongst players remains ... Read the full article
CFOs of European insurers concerned about muted economic growth: Moody’s
9th April 2019
Low economic growth and market volatility are the two top concerns for the Chief Financial Officers (CFOs) of European insurers. At the same time, insurers across the continent are increasingly leveraging technology in order to cut costs, according to Moody's Investors Service's European Insurance CFO survey. Low economic growth tops the ... Read the full article
Islamic insurance demand to drive profits & premium growth: Moody’s
5th April 2019
Growth in global demand for Islamic insurance, also known as takaful, is supporting profitability in the sector and will likely result in moderate premium increases over the next 2-3 years, according to Moody’s Investors Service. Globally, gross takaful premiums, or contributions, increased at a compound annual rate of 9% between 2014 ... Read the full article
Moody’s changes AXIS Capital’s ratings’ outlook to negative
4th April 2019
Moody's Investors Service has changed the ratings' outlook of AXIS Capital Holdings Limited from stable to negative, citing lower capitalisation and higher operating and financial leverage relative to peers. At the same time, Moody's has affirmed the ratings of AXIS Capital and its subsidiaries, including the Baa1 guaranteed senior debt of its ... Read the full article
No-deal Brexit may reduce UK life insurers’ capital and profits: Moody’s
2nd April 2019
Moody’s Investors Service expects UK life insurers to experience reduced capital and profits in the event of a no-deal Brexit scenario, as well as more limited growth prospects. The rating agency considers UK life players as particularly exposed to a no-deal outcome given their high asset leverage, their significant exposure to ... Read the full article
India set for strong re/insurance sector growth, says Moody’s analyst
24th January 2019
Strong economic progress and an evolving regulatory regime are expected to support the growth of India’s re/insurance sectors over the coming years, according to an analyst at Moody’s Investors Service. In addition, robust gross domestic product (GDP) expansion and low insurance penetration should help foster double-digit growth for the non-life sector ... Read the full article
Stable outlook for Asia Pacific insurance industry: Moody’s
10th January 2019
Despite the emergence of rising asset risks, the outlook for the life and property and casualty (P&C) insurance industry in Asia Pacific is stable and supported by solid capital levels and improving product mixes, according to Moody's Investors Service. "Economic growth among APAC economies will moderate but continue. This plus their ... Read the full article
Big data, price optimisation to face closer scrutiny: Moody’s
4th January 2019
The practice of price optimisation, in which an insurer establishes individual profiles through analysis of data not directly provided by the consumer, may come under scrutiny by the Financial Conduct Authority as it can result in individuals paying widely different prices for the same insurance cover, according to Moody’s investors ... Read the full article
Outlook of Italian life, P&C remains stable on robust earnings: Moody’s
4th January 2019
Moody's Investors Service has kept the outlook on Italy's life and property and casualty (P&C) insurance sectors at stable. Meanwhile, sustained sales of unit-linked products support profitability for the life insurance sector and while earnings for the P&C sector will decline moderately they will remain robust. Moody’s says that, for life insurance ... Read the full article
PRA’s climate change plan may conflict with shareholder expectations: Moody’s
17th December 2018
A recent consultation paper on climate change published by the UK’s Prudential Regulation Authority (PRA) is likely to enhance the long-term risk management of re/insurers, but may conflict with the near-term expectations of shareholders, according to Moody’s. Moody’s said that, if implemented, it expects the PRA’s proposed standard to improve ... Read the full article
Threat of disruption driving re/insurer tech investment: Moody’s
12th December 2018
As technology becomes more affordable and accessible, consumers are becoming more demanding and have higher expectations from financial service providers like re/insurance companies, according to Moody’s. This high potential of disruption is in turn propelling re/insurers to invest in tech to remain relevant with consumers and boost profitability, which faces headwinds ... Read the full article
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