According to Fitch Ratings, the cyber insurance market is expanding as premiums rise sharply and insurers remain committed to the market despite losses due to rising claims. The performance of cyber insurers will likely improve as prices rise and underwriting standards tighten, according to Fitch. Nonetheless, the loss experience of the cyber-insurance segment will most… Continue reading Higher Cyber Premiums to Help Insurer Performance
Tag: Fitch Ratings
D&O Insurance 1H22 Results Improve, Premium Growth Stalls
According to Fitch Ratings, the U.S. Directors & Officers (D&O) insurance line has experienced some of the most pronounced pricing increases among all commercial lines over the last three years, with shifts in underwriting practices such as lower limits, higher retentions, and more coverage exclusions fostering improvement in financial performance. These trends, however, are fading,… Continue reading D&O Insurance 1H22 Results Improve, Premium Growth Stalls
U.S. Life Insurers’ Commercial Mortgages Stable Amid Growing Headwinds
U.S. life insurers’ commercial mortgage fundamentals have largely recovered since the pandemic, with stable property outlooks for hotel, office retail and multifamily sectors, Fitch Ratings says. However, the Fed’s monetary tightening and the current recession will pressure some sectors of commercial mortgages over the midterm, with consistently high inflation and rising interest rates negatively affecting… Continue reading U.S. Life Insurers’ Commercial Mortgages Stable Amid Growing Headwinds
Medical Professional Liability Insurance Results Improve, Return to Underwriting Profit Still Unlikely
The medical professional liability insurance (MPLI) market in the United States significantly improved in 2021, reversing a four-year trend of declining performance while maintaining a 108 percent combined ratio. Earned premium growth associated with recent material premium rate increases will most likely improve segment performance further in 2022. According to Fitch Ratings, a return to… Continue reading Medical Professional Liability Insurance Results Improve, Return to Underwriting Profit Still Unlikely
D&O Insurance Sharp Premium Growth Drives Loss Ratio Improvement
According to rating agency Fitch Ratings, several years of U.S director and officers’ (D&O) insurance rapid premium growth led to a material decline in 2021’s direct loss ratios, and it is expected that it may continue in the near term. But, recent performance improvement and competitive factors are expected to temper further prices increases. The… Continue reading D&O Insurance Sharp Premium Growth Drives Loss Ratio Improvement
Reinsurers Return More Capital on Very Strong 2021 Results
The four major European reinsurers – Hannover Rueck SE (Insurer Financial Strength rating: AA-/Stable), Munich Reinsurance Company (AA/Stable), SCOR SE (AA-/Stable) and Swiss Reinsurance Company Ltd (A+/Stable) – improved their earnings significantly in 2021 due to better pricing and substantially lower coronavirus claims in property and casualty, Fitch Ratings says in a new report. This… Continue reading Reinsurers Return More Capital on Very Strong 2021 Results
January 2022 Reinsurance Renewals Mixed on Price Changes
At the January 2022 renewals, the reinsurance market provided a mixed picture. Only the lines of business with the highest losses in 2021 saw significant price increases. Loss-free lines of business attracted more capital, causing prices to remain stable or fall. Fitch Ratings expects risk-adjusted prices to rise by around 1% across all segments in… Continue reading January 2022 Reinsurance Renewals Mixed on Price Changes
Global Reinsurance Sector Outlook Improving for 2022
The outlook for the global reinsurance sector is improving for 2022, Fitch Ratings says in a new report. We expect significant improvements in reinsurers’ financial performances due to higher prices in a hardening market, a strong rebound in economic activity and lower pandemic-related losses. These positive factors should outweigh the negative effects of declining investment… Continue reading Global Reinsurance Sector Outlook Improving for 2022
U.S. Excess & Surplus Insurers Set for Strong Rebound After Poor 2020
Market performance for U.S. excess and surplus (E&S) insurers is anticipated to significantly improve in 2021 following a difficult 2020, according to a new Fitch Ratings report. U.S. property & casualty (P/C) insurers that specialize in the E&S market are seeing better growth and profit opportunities as premium rates rise in many segments. Growth did… Continue reading U.S. Excess & Surplus Insurers Set for Strong Rebound After Poor 2020
Hurricane Ida Not a Capital Event for Louisiana Reinsurance Market
Hurricane Ida is expected to generate significant economic and insured losses in Louisiana, but is unlikely to trigger ratings downgrades of individual property/casualty insurers or reinsurers, Fitch Ratings says. While losses will take some time to reconcile, there are indications that this will be an earnings and not capital event for the industry. Fitch-rated insurers… Continue reading Hurricane Ida Not a Capital Event for Louisiana Reinsurance Market