Insurance Capital Adequacy Criteria Implementation Resulted In Further Buffers Against Market Volatility
Apr 22, 2025 -… Back then, a dramatic increase in property and property catastrophe (short-tail lines) reinsurance pricing, driven by years of underperformance, led to a frantic and disorderly market renewal. …
Reinsurance Renewals For January 2025 Show Ample Capacity Amid Elevated Catastrophes And Adverse Casualty Trends
Jan 29, 2025 -… View Analyst Contact Information Table of Contents Reinsurance Pricing For Short-Tail Lines Has Peaked But Is Still Near All-Time Highs Casualty Reinsurance Renewals Are Stable Amid Reserve Volatility Concerns Global Reinsurance Capital Reaches New Heights California Wildfires Hit Reinsurers' Catastrophe Budgets Looking Ahead Related Research Key Takeaways Bolstered capital from strong earnings in 2024 led to ample capacity and healthy competition from reinsurers during January 2025 renewals, resulting in downward pressure on pricing across property and property catastrophe lines. ...Back then, a dramatic increase in property and property catastrophe (short-tail lines) reinsurance pricing, driven by years of underperformance, led to a frantic and disorderly market renewal. ...As a result, our view of the global reinsurance sector remains stable, reflecting forecast credit trends over the next 12 months, including the distribution of rating outlooks, existing sector-wide risks, and emerging risks (see: " Global Reinsurance Sector View 2025 ," published Jan. 29, 2025, on RatingsDirect). Reinsurance Pricing For Short-Tail Lines Has Peaked But Is Still Near All-Time Highs We've seen general downward pricing pressure on reinsurance renewals for property and property catastrophe lines. …
Insurers Can Absorb Losses Amid Escalating Los Angeles Wildfires
Jan 9, 2025 -… While property catastrophe reinsurance pricing has passed its peak, with selective moderate price declines in recent renewals, the sector remained committed to defending its terms and conditions and higher attachment points. …
Global Reinsurers Must Maintain Discipline To Cement Strong Performance Amid Casualty Risks
Sep 3, 2024 -… View Analyst Contact Information Table of Contents Reinsurers Are On Track To Again Earn Their Cost Of Capital In 2024 Strengthened Capitalization Continues To Anchor The Sector Global Reinsurance Capital Soars Property Reinsurance Pricing Is Peaking, Though Conditions Remain Favorable Natural Catastrophe Losses Remain Elevated Economic Inflation Decelerates Loss Reserve Risk Looms For Casualty Reinsurance Life Reinsurance Earnings Have Recovered To Pre-Pandemic Levels Discipline Is Key Related Research Key Takeaways The global reinsurance industry earned its cost of capital in 2023 for the first time in four years, and we expect it to do so in 2024-2025, solidifying our stable view of the sector. ...Economic inflation, although abating, and social inflationary concerns, as reflected in adverse loss cost trends in certain U.S. casualty lines. Favorable reinsurance pricing, supported by still-tight T&C in short-tail lines, overall underwriting discipline, and increasing reinsurance demand. ...Chart 4 Property Reinsurance Pricing Is Peaking, Though Conditions Remain Favorable Reinsurance pricing is still largely favorable in short-tail lines, though midyear renewals started to show rate decreases in some lines of business, policies, and regions. …
Reinsurers Show Growing Appetite For Natural Catastrophe Risks
Aug 30, 2024 -… We observed an average overall increase in risk exposure of 14%, although a smaller group of reinsurers continued to reduce theirs. Favorable reinsurance pricing and improving net investment income in 2023 and 2024 have presented reinsurers with opportunities to deploy capital and expand their property catastrophe business. …
Short-Tail Lines' Pricing Remains Firm While Reinsurers Keep An Eye On Casualty
Feb 1, 2024 -… View Analyst Contact Information Table of Contents Short-Tail Lines Reinsurance Pricing Reaches A Peak Capital Makes A Comeback Another Year Of Elevated Catastrophe Losses Looking Ahead Related Research Key Takeaways Overall, the Jan. 1, 2024, reinsurance renewals were orderly. ...This should sustain the reinsurance pricing momentum in the upcoming 2024 renewals. Short-Tail Lines Reinsurance Pricing Reaches A Peak The step change in 2023 in short-tail lines' pricing and structural changes (including higher attachment points and tighter terms and conditions) created a strong base for the reinsurance market. …
Bulletin: Munich Re's Revised 2023 Profit Guidance Is At The Strong End Of S&P Global Ratings' Forecast Earnings Range
Nov 8, 2023 -… We think Munich Re is well placed to continue to leverage favorable global reinsurance pricing. We therefore expect the group will post a net income of €4.0 billion-€4.5 billion, with a return on equity (ROE) of more than 14% and a consolidated property and casualty (P&C) reinsurance and primary insurance combined (loss and expense) ratio at least between 89% and 91% (based on IFRS 17) in 2023 and 2024. …
Global Reinsurance Stabilizes As Green Shoots Emerge In Underwriting
Sep 5, 2023 -… We have changed our view of the global reinsurance sector to stable from negative because we expect it will earn its cost of capital in 2023-2024, based on favorable property/casualty reinsurance pricing conditions, pre-pandemic earnings levels in life reinsurance, and increasing net investment income. ...High inflation, COVID-19, and the Russia-Ukraine conflict have had untimely negative effects on an already overburdened sector. Reinsurance pricing is the most obvious recent improvement for reinsurers and has been on the rise for a few years now, especially this year in short-tail lines. ...We think the overall favorable reinsurance pricing, and particularly the hard market conditions in the short-tail lines, will prevail, and we expect the industry will post more favorable results with a combined ratio of 92%-96%, including a catastrophe load of 8 to 10 percentage points (ppts), and a return on equity (ROE) of 9%-12% in 2023-2024, barring any outsize catastrophe losses. …
Catastrophe Risk Appetite Varies Among Global Reinsurers
Aug 24, 2023 -… Property catastrophe reinsurance pricing and net investment income are improving, while net exposure for a 1-in-250-year return period remained unchanged. …
Pricing Momentum Is Helping Reinsurers Turn The Corner
Jan 25, 2023 -… Despite favorable reinsurance pricing, investors remain on the sidelines except for catastrophe bonds. ...Heading into January's reinsurance renewals, there was little doubt that reinsurance pricing would continue to harden given the perfect storm that hit the sector in 2022 and in view of the various other challenges the sector has faced since 2017. ...In addition, the high interest rates should propel investment income, offsetting the moderating rate increases in some of the U.S. long-tail casualty lines. We believe reinsurance pricing momentum will continue for the upcoming renewals in 2023. …
Insurance Capital Adequacy Criteria Implementation Resulted In Further Buffers Against Market Volatility
Apr 22, 2025 -… Back then, a dramatic increase in property and property catastrophe (short-tail lines) reinsurance pricing, driven by years of underperformance, led to a frantic and disorderly market renewal. …
Reinsurance Renewals For January 2025 Show Ample Capacity Amid Elevated Catastrophes And Adverse Casualty Trends
Jan 29, 2025 -… View Analyst Contact Information Table of Contents Reinsurance Pricing For Short-Tail Lines Has Peaked But Is Still Near All-Time Highs Casualty Reinsurance Renewals Are Stable Amid Reserve Volatility Concerns Global Reinsurance Capital Reaches New Heights California Wildfires Hit Reinsurers' Catastrophe Budgets Looking Ahead Related Research Key Takeaways Bolstered capital from strong earnings in 2024 led to ample capacity and healthy competition from reinsurers during January 2025 renewals, resulting in downward pressure on pricing across property and property catastrophe lines. ...Back then, a dramatic increase in property and property catastrophe (short-tail lines) reinsurance pricing, driven by years of underperformance, led to a frantic and disorderly market renewal. ...As a result, our view of the global reinsurance sector remains stable, reflecting forecast credit trends over the next 12 months, including the distribution of rating outlooks, existing sector-wide risks, and emerging risks (see: " Global Reinsurance Sector View 2025 ," published Jan. 29, 2025, on RatingsDirect). Reinsurance Pricing For Short-Tail Lines Has Peaked But Is Still Near All-Time Highs We've seen general downward pricing pressure on reinsurance renewals for property and property catastrophe lines. …
Insurers Can Absorb Losses Amid Escalating Los Angeles Wildfires
Jan 9, 2025 -… While property catastrophe reinsurance pricing has passed its peak, with selective moderate price declines in recent renewals, the sector remained committed to defending its terms and conditions and higher attachment points. …
Global Reinsurers Must Maintain Discipline To Cement Strong Performance Amid Casualty Risks
Sep 3, 2024 -… View Analyst Contact Information Table of Contents Reinsurers Are On Track To Again Earn Their Cost Of Capital In 2024 Strengthened Capitalization Continues To Anchor The Sector Global Reinsurance Capital Soars Property Reinsurance Pricing Is Peaking, Though Conditions Remain Favorable Natural Catastrophe Losses Remain Elevated Economic Inflation Decelerates Loss Reserve Risk Looms For Casualty Reinsurance Life Reinsurance Earnings Have Recovered To Pre-Pandemic Levels Discipline Is Key Related Research Key Takeaways The global reinsurance industry earned its cost of capital in 2023 for the first time in four years, and we expect it to do so in 2024-2025, solidifying our stable view of the sector. ...Economic inflation, although abating, and social inflationary concerns, as reflected in adverse loss cost trends in certain U.S. casualty lines. Favorable reinsurance pricing, supported by still-tight T&C in short-tail lines, overall underwriting discipline, and increasing reinsurance demand. ...Chart 4 Property Reinsurance Pricing Is Peaking, Though Conditions Remain Favorable Reinsurance pricing is still largely favorable in short-tail lines, though midyear renewals started to show rate decreases in some lines of business, policies, and regions. …
Reinsurers Show Growing Appetite For Natural Catastrophe Risks
Aug 30, 2024 -… We observed an average overall increase in risk exposure of 14%, although a smaller group of reinsurers continued to reduce theirs. Favorable reinsurance pricing and improving net investment income in 2023 and 2024 have presented reinsurers with opportunities to deploy capital and expand their property catastrophe business. …
Short-Tail Lines' Pricing Remains Firm While Reinsurers Keep An Eye On Casualty
Feb 1, 2024 -… View Analyst Contact Information Table of Contents Short-Tail Lines Reinsurance Pricing Reaches A Peak Capital Makes A Comeback Another Year Of Elevated Catastrophe Losses Looking Ahead Related Research Key Takeaways Overall, the Jan. 1, 2024, reinsurance renewals were orderly. ...This should sustain the reinsurance pricing momentum in the upcoming 2024 renewals. Short-Tail Lines Reinsurance Pricing Reaches A Peak The step change in 2023 in short-tail lines' pricing and structural changes (including higher attachment points and tighter terms and conditions) created a strong base for the reinsurance market. …
Bulletin: Munich Re's Revised 2023 Profit Guidance Is At The Strong End Of S&P Global Ratings' Forecast Earnings Range
Nov 8, 2023 -… We think Munich Re is well placed to continue to leverage favorable global reinsurance pricing. We therefore expect the group will post a net income of €4.0 billion-€4.5 billion, with a return on equity (ROE) of more than 14% and a consolidated property and casualty (P&C) reinsurance and primary insurance combined (loss and expense) ratio at least between 89% and 91% (based on IFRS 17) in 2023 and 2024. …
Global Reinsurance Stabilizes As Green Shoots Emerge In Underwriting
Sep 5, 2023 -… We have changed our view of the global reinsurance sector to stable from negative because we expect it will earn its cost of capital in 2023-2024, based on favorable property/casualty reinsurance pricing conditions, pre-pandemic earnings levels in life reinsurance, and increasing net investment income. ...High inflation, COVID-19, and the Russia-Ukraine conflict have had untimely negative effects on an already overburdened sector. Reinsurance pricing is the most obvious recent improvement for reinsurers and has been on the rise for a few years now, especially this year in short-tail lines. ...We think the overall favorable reinsurance pricing, and particularly the hard market conditions in the short-tail lines, will prevail, and we expect the industry will post more favorable results with a combined ratio of 92%-96%, including a catastrophe load of 8 to 10 percentage points (ppts), and a return on equity (ROE) of 9%-12% in 2023-2024, barring any outsize catastrophe losses. …
Catastrophe Risk Appetite Varies Among Global Reinsurers
Aug 24, 2023 -… Property catastrophe reinsurance pricing and net investment income are improving, while net exposure for a 1-in-250-year return period remained unchanged. …
Pricing Momentum Is Helping Reinsurers Turn The Corner
Jan 25, 2023 -… Despite favorable reinsurance pricing, investors remain on the sidelines except for catastrophe bonds. ...Heading into January's reinsurance renewals, there was little doubt that reinsurance pricing would continue to harden given the perfect storm that hit the sector in 2022 and in view of the various other challenges the sector has faced since 2017. ...In addition, the high interest rates should propel investment income, offsetting the moderating rate increases in some of the U.S. long-tail casualty lines. We believe reinsurance pricing momentum will continue for the upcoming renewals in 2023. …