Bermuda Reinsurers Oppose S&P Ratings’ Proposed Debt Treatment

The Association of Bermuda Insurers and Reinsurers (ABIR) is strongly opposing a proposal by Standard & Poor’s Global Ratings to disallow senior debt as a form of available capital, calling the draft plan “disruptive” and an “overuse of market power.” ABIR’s technical response on numerous fronts is detailed in a 20-page letter to S&P, which… Continue reading Bermuda Reinsurers Oppose S&P Ratings’ Proposed Debt Treatment

Reinsurers Could Be Underestimating Nat Cat Exposure by 33-50%: S&P

Huge hurricane between Florida and Cuba. Elements of this image furnished by NASA

Analysts at S&P Global Ratings believe that reinsurers could be underestimating their exposure to natural catastrophe risks by between 33% and 50%, despite recent efforts to better incorporate climate change considerations into their business models. A new stress test by the rating agency highlighted the potential for significant volatility in earnings and capital due to… Continue reading Reinsurers Could Be Underestimating Nat Cat Exposure by 33-50%: S&P

COVID-19 Took A $8 Billion Bite Out of Global Multiline Insurers’ Earnings

Microscopic view of Coronavirus, a pathogen that attacks the respiratory tract. Analysis and test, experimentation. Sars. 3d render

The COVID-19 crisis cost 16 global multi-line insurers around $ 8 billion in 2020, although they still reported a substantial net profit of $ 36 billion, according to a report released by S&P Global Ratings. That net profit figure rose from $ 56 billion in 2019 to $ 48 billion in 2018, said S&P, which… Continue reading COVID-19 Took A $8 Billion Bite Out of Global Multiline Insurers’ Earnings

Industry Execs Optimistic About U.S. P&C Market Conditions: S&P Global

U.S. property and casualty (P&C) re/insurers are benefiting from a strong business environment with adequate capital reserves despite the elevated level of catastrophe losses in recent years, according to panelists at a recent S&P Global Ratings conference. The executives generally agreed that the industry was currently enjoying strong fundamentals and capital levels, although there was… Continue reading Industry Execs Optimistic About U.S. P&C Market Conditions: S&P Global