Reinsurance News
Reinsurance News
Reinsurance industry news, analysis, insight and interviews.
Reinsurance market news coverage provided everyday, on the top reinsurers and insurers, covering news topics of relevance to the reinsurance sector, as well as commercial and specialty insurance.
Munich Re beats expectations, although reinsurance clearly pressured
9th August 2017
Reinsurance giant Munich Re reported a decline in its second-quarter profits this morning, as lower reinsurance profitability eclipsed improved performance in its Ergo primary division. However the reinsurer beat analyst expectations and remains on track for its 2017 targets. Pressures in the reinsurance market continue to be evident in the largest ... Read the full article
Argo expands in reinsurance thanks to Ariel Re acquisition
8th August 2017
Argo Group International Holdings, Ltd. has expanded its reinsurance portfolio with the help of the scale and reach added following the acquisition of Ariel Re. Overall Argo has increased its gross written premiums by almost 23% to $687.2 million in Q2 2017, but in its international business the reinsurance growth ... Read the full article
Hedge fund reinsurers’ performance lags behind traditional players: S&P
8th August 2017
Despite increasing numbers of hedge fund reinsurance (HFRs) start-ups entering the soft P&C reinsurance marketplace, their performance lags behind that of traditional Bermudian reinsurers with many yet to generate an underwriting profit, Standard & Poor's (S&P) said in a recent report. This calls into question how sustainable the HFR strategy will be ... Read the full article
Fitch predicts continued premium rate declines in Asia as reinsurance competition intensifies
8th August 2017
Rating Agency Fitch has predicted a continued trend of softening reinsurance premium rates for the remainder of 2017 in Asia, as competition intensifies with both established reinsurers expanding operations in the region and increasing numbers of start-ups joining the playing field. Capital abundance has brought further declines to Asia's reinsurance premium ... Read the full article
Price declines steeper than expected as surplus capital defines market: Morgan Stanley
7th August 2017
Morgan Stanley analysts predict reinsurance pricing will continue to soften in the 0-5% range as traditional and alternative reinsurance capital attracts increasing numbers of investors seeking the safety of uncorrelated assets, making a market turn unlikely in the near future. Pricing pressure in reinsurance has followed the trend of decline of ... Read the full article
Asian re/insurance regulators continue to walk the protectionist tightrope
7th August 2017
Asian re/insurance regulators have continued the trend towards localisation and protectionism to stop capital outflow from insurance premium cedance, with this year seeing India join the ranks of countries introducing further “order of preference” rules. These rules require insurers to give local reinsurers and branches of onshore foreign insurers first 'right ... Read the full article
Swiss Re results miss forecasts as it navigates challenging market
4th August 2017
Global reinsurance firm Swiss Re missed analyst forecasts in its half-year results reported today, with the challenging market environment becoming very clear as its performance, earnings and return to investors continues to decline. The effects of a more competitive reinsurance market awash with capacity and the resulting consecutive years of price ... Read the full article
Athene Holding and Lincoln Financial enter into flow reinsurance treaty
3rd August 2017
Athene Holding has finalised a flow reinsurance treaty with Lincoln Financial Group, under which Athene insurance subsidiaries will reinsure Lincoln's traditional fixed and fixed indexed annuities, with effect from August 1st, 2017. Jim Belardi, Chief Executive Officer (CEO) of Athene, said; “Athene is pleased to begin this new partnership with Lincoln ... Read the full article
C-ROSS is causing Chinese insurers to adapt reinsurance arrangements
3rd August 2017
China’s implementation of the China Risk Oriented Solvency System (C-ROSS) in 2016 reshaped the domestic reinsurance space, leading to insurers choosing reinsurance arrangements with greater risk-based capital efficiency and becoming more wary of offshore cedance due to increased risk charges, said Fitch Ratings in a report. C-ROSS caused insurers throughout the country ... Read the full article
Beechwood sold after reputation loss from Platinum Partners scandal
3rd August 2017
Beechwood, a group of reinsurance and asset management companies, has been sold in a last ditch attempt to salvage the firm instead of shutting it down after it suffered reputation loss when hedge fund Platinum Partners collapsed after a federal investigation, Reuters reported. Platinum's top executives and founder were arrested ... Read the full article
Reinsurers’ reserves strong, but release levels “unsustainable”: Morgan Stanley
3rd August 2017
Reserving will continue to be a key debate in the reinsurance space as current release levels are "unsustainable" although reinsurers still remain mostly comfortably reserved, according to Morgan Stanley equity analysts. Analysts commented in the firm's latest market research report that most reinsurers are comfortably reserved, although with varying buffer levels ... Read the full article
S&P skeptical on P&C reinsurers’ use of M&A to offset market challenges
2nd August 2017
S&P Global Ratings has set its outlook for P&C re/insurance M&A as neutral with a slight negative bias, while re/insurers often see M&As as a viable growth option, the agency remains skeptical as to how effective this strategy of upscaling to offset market challenges really is. As global property and casualty ... Read the full article
California Earthquake Authority demand for reinsurance grows as insurance sales boom
2nd August 2017
The California Earthquake Authority (CEA) has increased its capacity by over $15 billion after seeing a continued trend of major increases to earthquake insurance sales that began last year, when the CEA's policies in force grew by over seven times the 10 year average gain to 52,000. As the CEA ensures its sufficiently capitalised ... Read the full article
Re/insurance needed to shield against U.S. infrastructure failure costs: Report
1st August 2017
U.S. electricity system outages caused by natural disasters drive economic losses of up to $55 billion annually, and these figures are set to grow as climate change causes more extreme weather events, spurring increased demand for innovative risk mitigation and transfer solutions, according to a report recently published by reinsurance giant, ... Read the full article
Pool Re CEO urges re/insurers to adapt to evolving terror threat
31st July 2017
The terrorism re/insurance model needs to evolve in line with changing threats after the 2017 attacks in the UK showed gaps in business interruption (BI) cover and the potential vulnerability of motor insurers to terror threats, Pool Re Chief Executive Officer (CEO), Julian Enoizi told Bloomberg in an interview. After this ... Read the full article
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