Reinsurance News
Morgan Stanley
Social inflation to drive commercial pricing across 2020: Morgan Stanley
21st January 2020
Commercial pricing increases are expected to persist throughout 2020 as carriers continue to combat rising loss cost trends largely attributable to social inflation, according to Morgan Stanley analysis. MS attributes social inflation concerns to several issues including an increasingly litigious environment, the opioid crisis and reviver statutes. Furthermore, while industry commentary regarding ... Read the full article
Against its peers, Hannover Re is the main beneficiary from P&C rate rises: MS
15th January 2020
Analysis of Europe's big four reinsurers by Morgan Stanley (MS) states that when compared with its peers, German reinsurance giant Hannover Re is the main beneficiary from improving property and casualty (P&C) rates. In a recent industry report, analysts at Morgan Stanley discuss the current rate environment following the January 1st ... Read the full article
US flood risk awareness increasing as major insurers pull back: analysts
26th September 2019
While current property flood risk disclosure requirements are set at the state level and can vary quite significantly, Morgan Stanley analysts note how some states have begun implementing more stringent conditions following recent major events. Texas, for example, revised its flood risk disclosure requirements following Hurricane Harvey, with property owners now ... Read the full article
Reinsurers confident of further rate increases, reports Morgan Stanley
13th September 2019
Reinsurers largely seem confident that the pricing momentum built over 2019 will continue into 2020 as the industry pushes for more sustainable margins, according to analysts at Morgan Stanley. Morgan Stanley’s analysis was based on its conversations with reinsurers at the Rendezvous event in Monte Carlo this year, who mostly seemed ... Read the full article
Reserve releases down in Q2, with headwinds to intensify: Morgan Stanley
20th August 2019
Reserve releases continued to decline during the second quarter of 2019, according to analysts at Morgan Stanley, with total favourable development down at $741 million for the 32 companies tracked by the firm. This was $616 million lower than in the second quarter of 2018, when the companies recorded favourable development ... Read the full article
New Hannover Re CEO has “embraced” reinsurers’ culture: Analysts
9th July 2019
Jean-Jacques Henchoz, the newly-appointed Chief Executive Officer of reinsurance giant Hannover Re, appears to have embraced the company’s culture and is expected to maintain a consistent approach to capital management and underwriting, according to analysts from Morgan Stanley. An Annual General Meeting of Hannover Re in May saw Jean-Jacques Henchoz ... Read the full article
June 1 rates expected to be up 10% – 30% for loss-affected accounts: Analysts
3rd June 2019
Meetings with insurers and reinsurers in Bermuda points to an expectation of average mid-year reinsurance renewal price increases of 10% - 30% for loss-affected accounts, according to analysts at Morgan Stanley. After a prolonged period of falling rates, heavy catastrophe losses and a muted rate response, reinsurers were hopeful of a ... Read the full article
Industry reserves continue to weaken in 2018: Morgan Stanley
6th May 2019
Industry reserves continued to weaken in 2018, according to actuarial analysis by Morgan Stanley, which indicated a $9.8 billion deficiency for the P&C industry, representing a year-on-year deterioration of over $5 billion. Morgan Stanley estimates an actuarially reasonable range of reserves between $625.2 billion and $657.7 billion. Industry carried reserves of $631.7 ... Read the full article
P&C reserve development risk to increase: Morgan Stanley
15th January 2019
Analysts at Morgan Stanley believe that the risk of adverse development in property and casualty (P&C) re/insurance reserves is likely to heighten over the coming years, potentially leading to a major earnings headwind. The firm’s annual actuarial reserve study revealed an overall industry reserve deficiency of $4.3 billion relative to $615 ... Read the full article
Wildfires could boost P&C pricing and reduce risk appetite: Morgan Stanley
21st November 2018
With the recent outbreak of devastating wildfires in California marking two consecutive years of large losses in the state, analysts at Morgan Stanley have suggested that the property and casualty (P&C) re/insurance market could respond by raising prices and reducing its risk appetite. The firm said that the industry will have ... Read the full article
Camp Wildfire insured losses could reach $4bn: Morgan Stanley
12th November 2018
Insured losses from the Camp Wildfire, which has burnt through roughly 110,000 acres and 6,700 structures in Northern California, are likely to be between $2 billion and $4 billion, with higher total economic losses, according to estimates from Morgan Stanley. The Camp Wildfire became the most destructive in California’s history ... Read the full article
$15bn Florence losses could support P&C pricing, says Morgan Stanley
17th September 2018
Morgan Stanley has released an insured loss estimate of between $5 billion and $15 billion for damages relating to Hurricane Florence, which made landfall in North Carolina on Thursday night, and has suggested that losses could support property and casualty (P&C) re/insurance pricing. Florence was downgraded from a Category 4 to ... Read the full article
Current market landscape has challenged long-term reinsurance business model: Analysts
10th July 2018
Morgan Stanley analysts have warned that the current reinsurance market landscape has challenged the long-term business model of reinsurance companies, in light of disappointing rate increases on the back of 2017's catastrophe losses and five years of pricing reductions. In spite of the record-level of global catastrophe losses experienced in 2017, ... Read the full article
Further disappointment for Jan 2019 renewal possible, says Morgan Stanley
2nd July 2018
After meetings with seven re/insurers (Arch, Axis, Hiscox, Nephila, PartnerRe, RenRe, and Third Point Re), Morgan Stanley has indicated that, in absence of large, unexpected losses or significant industry reserve issues, there's potential for further pressure at the key January 2019 renewals. Morgan Stanley points to an abundant supply of alternative and ... Read the full article
Morgan Stanley analysts “more confident” AIG is past large reserve issues
30th May 2018
Analysts at Morgan Stanley estimate $17 million in excess reserves for large primary insurer American International Group (AIG), marking its first redundancy since Morgan Stanley's initial study eight years ago, and, which suggests large reserve issues are finally behind the company. Following years of reserve charges at AIG, Morgan Stanley analysts ... Read the full article
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