S&P Expects Inflation to Push P/C Combined Ratio Over 100 in 2022

Inflation and insurers

 S&P Global Market Intelligence predicted in its latest U.S. Property & Casualty Insurance Market Report that inflation will send the property/casualty insurance industry to its first unprofitable year since 2017 with an expected combined ratio above 100%. Penned by lead insurance analyst Tim Zawacki, S&P in in its report forecast a combined ratio of 100.4%… Continue reading S&P Expects Inflation to Push P/C Combined Ratio Over 100 in 2022

U.S. Commercial Auto Q1 Premiums Make Significant Jump Over 5 Years

Semi Truck Driver Making Conversation with Other Truck Drivers Through CB Radio.

According to an S&P Global Market Intelligence analysis, direct premiums written for the liability business line by U.S. commercial auto insurers in the first quarter were significantly higher than in the same period in 2018. Year over year, liability direct premiums written in the first quarter increased to $12.37 billion from $10.39 billion. Direct premiums… Continue reading U.S. Commercial Auto Q1 Premiums Make Significant Jump Over 5 Years

S&P: Lloyd’s Unlikely to Turn an Underwriting Profit in 2020

Lloyd's underwriting profit

With COIVD-19 having already caused sizeable losses and with the North Atlantic hurricane season still a factor, S&P Global Ratings considers it unlikely that Lloyd’s of London will turn an underwriting profit in 2020. S&P notes how despite an overall profit in 2019, its first since 2016, Lloyd’s underwriting remained unprofitable, with a headline combined… Continue reading S&P: Lloyd’s Unlikely to Turn an Underwriting Profit in 2020

COVID-19 Turns S&P Negative on Global Reinsurance

With rising property and casualty reinsurance claims and failing investment returns, S&P Global Ratings expects the coronavirus pandemic to turn 2020 into a tough year for global reinsurers. As a consequence, S&P believes the sector’s ability to earn its cost of capital in 2020 has visibly reduced, to almost negligible. Including assumptions for 2020, it’s… Continue reading COVID-19 Turns S&P Negative on Global Reinsurance

S&P Stable on North American P&C Despite COVID-19 Pressures

Analysts at S&P Global Ratings believe that fallout from the coronavirus (COVID-19) pandemic will be “manageable” for North American property and casualty (P&C) re/insurers, and have maintained their stable outlook on the sector. The rating agency considers current financial market turmoil and the ensuing recession to be a greater headwind to P&C re/insurers than underwriting… Continue reading S&P Stable on North American P&C Despite COVID-19 Pressures

Global Reinsurance Pricing Not Hard, But Firming: S&P Global

After a two year period where it seemed unlikely that catastrophe losses would be enough to harden the overall market, S&P Global Ratings says reinsurers saw some green shoots during the 2019 April and June renewals, with property catastrophe rate increases in the 15% to 25% range on loss affected accounts. In a new report,… Continue reading Global Reinsurance Pricing Not Hard, But Firming: S&P Global