Reinsurance News
Ukraine Russia conflict
All of our news coverage of the insurance and reinsurance market implications of the Ukraine – Russia conflict can be found below.
Zurich’s exposure to Ukraine conflict minimal, reserves strengthened: Berenberg
23rd March 2022
Analysts at investment bank Berenberg have argued that Zurich’s exposure to Russia’s invasion of Ukraine and the resulting sanctions are minimal, while its reserves appear stronger than in the previous year. It’s estimated that Zurich added $500 million to its already strong claims reserves in 2021, before reinsurance. This is equivalent to ... Read the full article
RWI underwriters deny & tighten coverage in Russia – Ukraine: CAC Specialty
23rd March 2022
Insurance broker CAC Specialty has said the representations and warranties insurance (RWI) market has tightened significantly in Russia, Ukraine, and other impacted regions with some underwriters outright denying coverage. In a specialty report which was compiled based on feedback from numerous RWI underwriters, CAC stated how RWI appetite in the region ... Read the full article
S&P to withdraw ratings for Russian firms
23rd March 2022
S&P Global Ratings has announced plans to withdraw all of its outstanding ratings on Russian firms, in line with new regulations imposed by the European Union (EU). Earlier this month, S&P announced the suspension of its commercial operations in Russia, in response to the country’s widely-condemned invasion of Ukraine. Following that, on ... Read the full article
Re/insurers could face $10bn in claims from stranded planes: Fitch
22nd March 2022
Analysts at Fitch Ratings have warned that insurers could face claims as high as $10 billion in a worst-case scenario due to the grounding of planes in Russia, with 30-40% likely to be passed on to reinsurers. More than 500 planes that are financed or owned by non-Russian lessors are stranded ... Read the full article
Cargo underwriters ditching Russian & Ukrainian cover
21st March 2022
A number of cargo underwriters are moving to cancel and avoid coverage on Russian exports and consignments coming into both Russia and Ukraine, according to reports from Lloyd’s List. Sources at the publication say underwriters are concerned about reputational risks and potential difficulties in paying out on insured claims. As such, the ... Read the full article
Russian sanctions threaten historic aviation insurance loss: analysts
21st March 2022
Following Russia’s move to nationalise jets stranded in the wake of Western sanctions, analysts and industry leaders have warned that the aviation insurance market could be facing a historic loss. More than 500 Western-built aircraft worth roughly $10 billion are thought to be grounded in Russia, as authorities in the country ... Read the full article
Coface’s exposure to Russia’s invasion of Ukraine equates to €5bn: Deutsche Bank
21st March 2022
According to Deutsche Bank, at the end of February credit insurer Coface's total exposure to Russia’s invasion of Ukraine equated to EUR 5 billion, with 95% Russia, and 5% Ukraine, which is equivalent to less than 1% of total group insured exposure. The bank explained that this exposure has a duration ... Read the full article
Market Volatility: Main risk for European re/insurers from Russia – Ukraine
18th March 2022
American credit rating agency Fitch Ratings warns that the war between Ukraine and Russia is more likely to impact the European insurance sector through second-order financial market volatility, instead of through direct effects from sanctions on Russian entities and other measures that are restricting Russian businesses. European re/insurers have little direct ... Read the full article
Prolonged Russia-Ukraine conflict deleterious to insurers – DBRS Morningstar
18th March 2022
Prolonged conflict between Russia and Ukraine could have deleterious effects on the bottom line for major insurers, writes DBRS Morningstar in a new note. The current conflict, aligned with increased inflation, could lead to insurers being squeezed by claims, while unable to pass on costs to customers, wrote Tomasz Walkowicz and ... Read the full article
Moody’s says Russian invasion has done little to impact insurer solvency ratios
17th March 2022
The impact of Russia’s invasion of Ukraine at the end of February has done little to depress solvency ratios, according to a new note from Moody’s. Despite the harsh economic sanctions and economies buffeted by high inflation and rising fuel prices, Moody’s said that the volatility in financial markets caused by ... Read the full article
Large losses accumulate in Q1, with Japan quake the latest
17th March 2022
After another year of $100 billion+ catastrophe losses in 2021, reinsurers and London Market insurers are facing an accumulation of losses in the first quarter of this year, raising the likelihood that large losses exceed budget for the period, according to Bank of America. Analysts warn of heightened loss accumulation as ... Read the full article
Berenberg expects Q1 2022 to be millions over budget for Allianz
17th March 2022
Berenberg has said it expects Q1 2022 for Allianz to be €600m over budget. The firm said it based this analysis on natural catastrophe losses arising from European storms and floods in Australia, which it said were around €300m above the normal run rate. In addition, it calculated €300m worth of ... Read the full article
Re/insurers “strongly positioned” to navigate Ukraine fallout: Howden
16th March 2022
Analysts at Howden have asserted that the re/insurance market is “strongly positioned” to navigate the economic fallout from Russia’s invasion of Ukraine, despite the myriad risks the conflict presents. Risks identified by Howden in connection with the war include direct underwriting losses, rapidly rising prices, slower economic growth, financial market volatility ... Read the full article
“Russian nationalisation of stranded planes biggest risk to London market” – Berenberg
16th March 2022
The greatest risk to the London insurance market could be in the aviation lines due to Russia’s nationalising of planes trapped within its borders due to international sanctions. In recent days, the Russian state has moved to deal with the issue of the 500+ leased jets that cannot leave the ... Read the full article
Ingosstrakh facing financial challenges due to Ukraine invasion: GlobalData
16th March 2022
According to data and analytics company GlobalData, Ingosstrakh, the fourth largest general insurer in Russia could be facing significant financial challenges following Russia’s invasion of Ukraine. In 2020, the insurer earned 36.3% of its RUB106.5 billion ($910.1 million) premium income in the Marine, Aviation and Transit (MAT) insurance market which has ... Read the full article
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