Reinsurance News
Morgan Stanley
$4.3bn deficiency in 2017 P&C industry reserves: Morgan Stanley
12th April 2018
In its annual actuarial analysis of industry reserves, Morgan Stanley reported a year-on-year (YoY) deterioration that left Property and Casualty (P&C) industry reserves $4.3 billion deficient in 2017. This figure marks a further decline from the $2.5 billion deficiency that Morgan Stanley estimated in 2016, representing an overall deterioration of $1.8 ... Read the full article
Analysts predict increases in P&C reinsurance pricing and demand
12th March 2018
Insurance and reinsurance Industry analysts Keefe, Bruyette & Woods (KBW) and Morgan Stanley have suggested that the outlook for property and casualty (P&C) reinsurance is positive both in terms of pricing and demand. KBW notes that, although January 1st 2018 reinsurance rates were below most companies’ post-Q3 2017 expectations, reinsurance pricing ... Read the full article
Tailwinds to further drive up earnings for P&C re/insurers: Morgan Stanley
9th March 2018
P&C re/insurers are set for a profitability boost in 2018, driven by tailwinds of further rate improvements and M&A activity and deals that are spurred by the passage of the U.S. tax reform, according to Morgan Stanley. A net pricing increase of just 1-5% is expected to boost re/insurers earnings on ... Read the full article
Morgan Stanley warns on headwinds for P&C industry
6th March 2018
The U.S. tax reform has been heralded as a positive overall for re/insurers, but Morgan Stanley has pointed to a potential erosion of increased earnings as additional regulatory headline risks and an expected slowing of reserve releases take their toll on balance sheets. Prior to Q4 earnings, Morgan Stanley had raised ... Read the full article
Auto-executing smart contracts may be “most exciting” blockchain application: Morgan Stanley
31st January 2018
Auto-executing smart contracts may be the most exciting blockchain application for the insurance industry, bringing the potential to move from simple binary triggers such as flight delay insurance to more complex IoT sensor triggered contracts, according to Morgan Stanley. Although the insurance industry is relatively late in looking at blockchain's potential, ... Read the full article
U.S. tax reforms could be negative for global re/insurers, but impact limited: Morgan Stanley
8th December 2017
The excise tax and anti base erosion tax included in the U.S. tax reforms could be bad news for global re/insurers, however its impact is expected to be limited as firms adopt new strategies for U.S. business operations, according to Morgan Stanley. The excise tax calls for 20% tax on payments ... Read the full article
Property catastrophe reinsurers set for rate hikes at 1/1 renewals: Morgan Stanley
7th December 2017
Property catastrophe reinsurers are set to see the first pricing increase in years as they race towards the January 1st renewals, Morgan Stanley said after speaking to 9 re/insurers at Bermuda meetings. “Jan 1 renewals have been slower than normal but early transactions indicate +20-30% rate increases in retro, +10-20% in ... Read the full article
Reinvestment yield increases could boost reinsurers: Morgan Stanley
30th November 2017
According to Morgan Stanley analysts, a 100bps increase in reinvestment yield drives a Return On Equity (ROE) increase of 5% for reinsurers, meaning global players could see wins on ROE over the next two years with an overall 1-2% premium increase forecast due to broad-based reinsurance rate increases. "For every 100bps increase ... Read the full article
Pricing boom ahead for U.S. P&C reinsurance: Morgan Stanley
29th November 2017
The pricing for P&C reinsurance is expected to see a 1-2% premium increase after 2017 global insured losses reached nearly $100 billion, according to Morgan Stanley. Analysts said; “we reflect~1-2% premium increase due to broad-based P&C reinsurance rate increases in our forecasts for the global reinsurers, of which half is earned ... Read the full article
Reinsurers warned not to ignore reserve issues
20th November 2017
The question of how Q3 losses impact pricing has largely overshadowed the reserve issues, however, Morgan Stanley warned the industry not to ignore problems of weakening reserves as the downwards reserve development trend continued in 2017, and is expected to carry into 2018. Favourable prior year reserve development slowed in Q3 2017 ... Read the full article
Reinsurers believe loss gap will build to match $80-100bn estimates
14th November 2017
Amidst speculation over whether the sizable gap between re/insurers' reported losses and industry estimated losses will be filled, half of conference attendees polled at the 2017 Bermuda Reinsurance Conference said they expect total insured losses to continue to grow to match industry estimates of U.S. $80-100 billion. Q3 re/insurance losses could ... Read the full article
Analysts explain $70bn Q3 catastrophe loss gap: Morgan Stanley
2nd November 2017
At an estimated $100 billion, Q3 re/insurance losses could hit records, but with just $30 billion of this reported in company losses, so far, investors are concerned over the potential knock-on consequences the giant $70 billion loss gap could have on the market. A recent Morgan Stanley report said the gap ... Read the full article
P&C sector rate increases could raise earnings by ~6.29%, says Morgan Stanley
31st October 2017
Analysts at Morgan Stanley estimate that rate increases of between 1% to 5% across the P&C sector, as a result of record levels of catastrophe losses experienced in the third-quarter, could raise earnings by an average of 6.29%. Insured catastrophe losses in the third-quarter are expected to total around $100 billion, ... Read the full article
Hurricane Harvey insured loss could be as high as $40 billion (inc NFIP), warns Morgan Stanley
1st September 2017
Morgan Stanley has estimated that the insurance industry loss from hurricane Harvey will be between $15 billion and $40 billion, with the majority coming from flooding to homes and businesses. Overall, economic loss estimations for the event have varied, with Moody's estimating a $108 billion cost and catastrophe risk modeller, ... Read the full article
Declining reserves denting the earnings of global P&C players: Morgan Stanley
21st August 2017
Reserve releases in the P&C sector slowed in the second-quarter of 2017, a trend that is expected to persist and intensify through the remainder of the year, eating into companies' earnings, according to analysis from Morgan Stanley. Morgan Stanley analysts warned earlier in 2017 of a $2.5 billion P&C sector ... Read the full article
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