Reinsurance News
Morgan Stanley
Favourable pricing trends to continue: Morgan Stanley
18th January 2021
Equity analysts at Morgan Stanley have released a report which shows a number of predictions for 2021, anticipating that favourable pricing trends are likely to continue driving robust premium growth during 2021. Many factors have driven recent hardening such ... Read the full article
Analysts see potential for more notable rate rises at upcoming reinsurance renewals
8th January 2021
While risk-adjusted pricing gains in the mid-single-digits at the Jan 1st, 2021 reinsurance renewals fell below expectations, analysts at Morgan Stanley feel it's likely that "more pronounced" rate rises will come to fruition at the April and mid-year renewals. As the COVID-19 pandemic compounded losses for reinsurers in 2020, the industry's ... Read the full article
Morgan Stanley expects reinsurer earnings quality to improve
25th September 2020
Analysts at Morgan Stanley have said they expect to see the reinsurance industry’s earnings quality improve alongside continued pricing increases. Based on its conversation with reinsurers around the virtual Monte Carlo event this year, the firm said that rate momentum will likely continue throughout 2021 and potentially beyond. And while margin expansion ... Read the full article
Courts rule insurers not responsible for COVID-19 BI losses
11th August 2020
American multinational investment bank, Morgan Stanley (MS), has commented on a decision made by the Superior Court of D.C. which finds that the COVID-19 pandemic does not cause direct physical damage which would be a required trigger for business interruption (BI). According to MS, this ruling offers further support for its ... Read the full article
Morgan Stanley partners with HUB, Marsh, and WTW on HNW P&C cover
7th August 2020
American investment bank, Morgan Stanley has announced that it will now be offering Property and Casualty (P&C) insurance to its high net-worth (HNW) clients and their families. Morgan Stanley has teamed up with re/insurance brokers HUB International, Marsh Private Client Services, and Willis Towers Watson (WTW) in order to offer this ... Read the full article
6-7% rate increases for reinsurers at Jan 2021: Morgan Stanley
15th July 2020
Morgan Stanley analysts expect pricing momentum to continue for reinsurers in 2020/21, with January 1 renewal price increases of 6-7%. This would be the most significant increase since 2018 and analysts are becoming increasingly confident that the large incumbent reinsurers will see a benefit from the improving cycle, not just the smaller, nimble players. The reinsurers ... Read the full article
Hyperion X reports peak rate increases of 20% at July renewals
10th July 2020
Hyperion X, the data and analytics specialist unit of the Hyperion Insurance Group, has reported pricing improvements of between 0% and 20% at the July renewal. Following a conversation with Hyperion X executives David Flandro and Nick Griffiths, Morgan Stanley noted that magnitude of rate improvement in July was below the ... Read the full article
UK Gov to review Solvency II ahead of Brexit transition deadline
25th June 2020
The United Kingdom’s HM Treasury has announced that it plans to review Solvency II rules for insurers and reinsurers ahead of the Brexit transition end on 31 December 2020. The government said that the review would ensure that Solvency II is “properly tailored” to take account of the structural features of ... Read the full article
Australian carriers face reinsurance price hike at July renewal: Morgan Stanley
16th June 2020
Australia's primary insurers, which make heavy use of reinsurance and which have exceeded cat budgets in recent years, face a significant increase in reinsurance rates at the upcoming July 1 renewals, according to Morgan Stanley. Amid a wider global trend of reinsurance hardening, Australia in particular has seen a consistent increase ... Read the full article
Lancashire expected to go for growth, Morgan Stanley analysts say
2nd June 2020
Analysts at Morgan Stanley are expecting Lancashire Holdings Limited to take advantage of the hardening market and expand its footprint, while at the same time improve profitability on the back of better pricing. With P&C pricing anticipated to improve further in 2020 and potentially into 2021, Lancashire is well placed to ... Read the full article
COVID-19 reinsurance impact of $82bn could turn pricing: analysts
20th May 2020
Analysts at Morgan Stanley have estimated that a scenario including a projected COVID-19 reinsurance impact of $82 billion could lead to a turn in reinsurance pricing. Responding to the recent Lloyd’s of London pandemic estimate, which put the total cost to the re/insurance industry at $203 billion, Morgan Stanley tried ... Read the full article
Q1 results to see lighter catastrophe load, auto frequency benefits: MS
20th April 2020
Analysts at Morgan Stanley have lowered catastrophe loss estimates for both U.S. primary insurers and reinsurers ahead of Q1 2020 results season, driven in part by lower-than-expected U.S. spring storm activity. Unsurprisingly, the focus of first-quarter 2020 results is expected to be the ongoing COVID-19 coronavirus pandemic, but a reduction in ... Read the full article
Increased litigation levels to emerge from COVID-19: Analysts
17th April 2020
Analysts at Morgan Stanley have predicted that increased litigation levels will emerge from the coronavirus (COVID-19) pandemic and its accompanying economic downturn. Jonathan Molot, Co-founder and Chief Investment Officer of Burford Capital, confirmed to Morgan Stanley that his firm is currently seeing significant growth in the potential demand for litigation financing ... Read the full article
Reserve risk heightened by deteriorating workers’ comp tailwind, say analysts
4th March 2020
Analysts at Morgan Stanley have warned that despite workers' compensation (W/C) business currently accounting for around 60% of total favourable reserve development, this tailwind won't last long and adds to reserve risk over the coming months. In 2018, W/C favourable reserve development accounted for 60% of total industry development, which, while ... Read the full article
Top reinsurers’ exposure to Wuhan coronavirus, Asia pandemic analysed
23rd January 2020
With official numbers of the Wuhan coronavirus currently standing at 585 confirmed infected and 17 dead, Morgan Stanley analysts have detailed the extent to which the top four European global reinsurers are exposed to pandemic risk in Asia. As of 2018, Munich Re wrote €2.3 billion in premiums in Asia via ... Read the full article
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