Underwriting losses are expected to continue over the near term for the U.S. directors & officers (D&O) liability insurance segment as claims amid the economic fallout from the pandemic emerge, which will take several years to fully pay out, Fitch Ratings says. However, there is limited risk to ratings of individual insurers from the D&O… Continue reading U.S. D&O Insurers Brace for Pandemic-Related Losses
Tag: Fitch Ratings
Reinsurance Rates to Continue to Increase into 2021
Meaningful reinsurance rate increases should be expected into 2021 at the January renewals as overall pricing is inadequate, according to Fitch Ratings. Analysts note how there’s also still uncertainty surrounding the pandemic and that there still remains a capacity-constrained dislocated retrocession market. Reinsurers are expected to take advantage of the most favourable market environment since… Continue reading Reinsurance Rates to Continue to Increase into 2021
P/C Insurer Losses Manageable Despite Coronavirus Performance Declines
Operating performance for North American property/casualty (P/C) insurers declined in the first half of 2020, with the ongoing coronavirus pandemic affecting underwriting results and investment earnings, according to the last midyear P/C insurance review from Fitch Ratings. Annualized GAAP operating ROAE declined to 2.8% at 1H20, down from 8.3% in the prior year. Sixteen of… Continue reading P/C Insurer Losses Manageable Despite Coronavirus Performance Declines
U.S. Life, Health Insurers See Most Risk Amid Coronavirus Fallout: Fitch
North American insurers face key vulnerabilities and potentially unforeseen downside risks amid the fallout from the coronavirus pandemic, including outsized investment exposure with market volatility exacerbating potential issuer defaults, increased mortality risk and elevated claims, Fitch Ratings says Fitch revised the life and health insurance sector rating outlooks to negative from stable amid the coronavirus… Continue reading U.S. Life, Health Insurers See Most Risk Amid Coronavirus Fallout: Fitch
Coronavirus to Weigh Against P&C Improvements: Fitch
North American property and casualty (P&C) insurers reported improved operating results in 2019, but near-term performance will likely be more challenging due to the onset of coronavirus (COVID-19) and the resulting economic impact, according to Fitch Ratings. The rating agency has maintained its stable outlook on the US P&C insurance and reinsurance sectors, but previously… Continue reading Coronavirus to Weigh Against P&C Improvements: Fitch
Fitch Ratings Revises London Market Insurance Sector Outlook to Negative
Fitch Ratings said the move reflected the “disruption and the related impacts on the credit quality of London Market insurers” caused by the outbreak Fitch Ratings has revised its outlook for the underlying fundamentals of the London Market to negative as a result of the ongoing coronavirus pandemic that has killed thousands across the globe.… Continue reading Fitch Ratings Revises London Market Insurance Sector Outlook to Negative
Fitch Ratings’ Outlook on Fundamentals of U.S. P/C Insurance Sector Revised to Negative
Fitch Ratings has revised its outlook for the underlying fundamentals of the U.S. property/casualty (P/C) insurance sector to negative from stable (sector outlook). The sector outlook revision is due to increased concerns over COVID-19, the disease caused by the coronavirus, and related impacts on near term performance and the credit quality of insurers. Fitch’s outlook… Continue reading Fitch Ratings’ Outlook on Fundamentals of U.S. P/C Insurance Sector Revised to Negative
Fitch Ratings: Rating Outlook for U.S. Life Insurance Industry Revised to Negative
Fitch Ratings has revised the rating outlook for the U.S. life insurance industry to negative from stable. The outlook revision is due to increased concerns over the Coronavirus and related impacts on the credit quality of life insurers. Today’s rating outlook revision to negative reflects significantly increased uncertainties facing life insurers associated with the material… Continue reading Fitch Ratings: Rating Outlook for U.S. Life Insurance Industry Revised to Negative
U.S. P/C Insurers’ Capital Strength, Pricing Improvement Support Stable Outlook
U.S. property/casualty (P/C) insurers are poised to generate slightly improved underwriting profits in 2019 and could do so again in 2020, according to Fitch Ratings’ outlook for the sector. Fitch maintains a Stable Outlook for the sector’s fundamentals and its ratings in 2020. “Rising premium rates in many commercial lines segments should benefit underwriting profits… Continue reading U.S. P/C Insurers’ Capital Strength, Pricing Improvement Support Stable Outlook
U.S. Personal Auto Insurance Underwriting Performance Has Likely Peaked: Fitch
Performance in the U.S. personal auto insurance market continues to run favorably in 2019, on par with underwriting profits achieved in 2018, according to Fitch Ratings. However segment results for the industry are likely unsustainable going forward based on shifting market fundamentals. The industry statutory personal auto combined ratio of 98% in 2018 represented the… Continue reading U.S. Personal Auto Insurance Underwriting Performance Has Likely Peaked: Fitch