Reinsurance News
Casualty reinsurance
Casualty reinsurance provides insurers with protection against large, unexpected losses from liability-based risks.
Casualty lines of business include claims arising from legal responsibility for injury or damage to others, including auto liability, medical malpractice, D&O (Directors & Officers), as well as product liability, errors and omissions (E&O), and many more niche liabilities.
The casualty reinsurance market is a significant component of the global reinsurance market and its risks have a far longer-tail than many catastrophe or specialty lines.
As such, casualty reinsurers are highly specialised and the casualty market also makes use of run-off and legacy reinsurers, to enable them to gain finality on elements of their casualty reinsurance portfolios.
Read all our casualty reinsurance news below.
U.S. P&C insurers to gain 15% on net income from tax regime
26th January 2018
With a 15% net income gain for U.S. P&C insurers expected for the first two years after the corporate tax rate reduction to 21%, Conning’s fourth quarter forecast for P&C insurers outlines a clear positive impact to the sector. The new tax regime will reduce the relative attractiveness of tax exempt ... Read the full article
Modest rate increases for loss-affected U.S. lines, small improvements elsewhere: Fitch
25th January 2018
Global reinsurance pricing at the January 1st, 2018 renewals season saw modest rate increases in response to significant catastrophe loss activity in the second-half of 2017, with the biggest improvements occurring in loss-affected U.S. lines, notes Fitch Ratings. Unsurprisingly, property catastrophe rates in the U.S. experienced the biggest rate increases at ... Read the full article
Casualty market calms after HIM but reinsurers push for improved T&Cs: Willis Re
10th January 2018
The global casualty market remains orderly and has calmed down somewhat from the initial impacts of third-quarter hurricanes, however, the trend of improved terms and conditions (T&C) for reinsurance buyers is now slowing, and even reversing in some instances, according to Willis Re. In its recent 1st View report, reinsurance broker ... Read the full article
P&C insurance sector could see pricing impacted by U.S. tax bill: KBW
3rd January 2018
Keefe Bruyette & Woods (KBW) expects the U.S. tax bill to impact the Property & Casualty insurance industry with lower pricing, due to the sector's longstanding track record of price competitiveness. KBW analysts forecast that personal lines will likely respond quicker to the lower tax rates than commercial, especially in specialty ... Read the full article
P&C sector losses could be eroding reserves: Credit Suisse
29th December 2017
In a report on the Property & Casualty sector, Credit Suisse analysts said the disconnect between casualty prices bottoming while returns remain resilient suggests reserves are being eroded as they're used to maintain past levels of profitability and warned of results deteriorating in future years. Many publicly traded re/insurers are still ... Read the full article
London’s Grenfell tower demonstrates dangers of combustible cladding: Swiss Re
15th December 2017
London's Grenfell Tower tragedy in June has highlighted the dangers of combustible exterior cladding on high rise buildings - which have since become a global concern for governments and reinsurers. Swiss Re Corporate Solutions has warned of the dangers of combustible exterior cladding on high rise buildings, after reinsurers picked up the ... Read the full article
U.S. P/C insurers’ catastrophe losses triple YOY: Fitch
11th December 2017
U.S. property and casualty (P/C) insurers reported a sharp decline in results as catastrophe losses for the group nearly tripled from 2016, according to Fitch Ratings in a new report. Fitch believes that 2017 may see a record for insured catastrophe losses for the U.S. P/C market after Hurricanes Harvey, Irma ... Read the full article
French P&C sector faces headwinds: Moody’s
8th December 2017
Moody's outlook for the French P&C insurance sector remains negative as intense competition causes further downwards pricing pressure and investment income suffers from low interest rates. Overall, P&C combined ratios are expected to remain at 100%, or break even, and motor insurance is forecast to remain unprofitable at the underwriting level, ... Read the full article
Sompo International hires two casualty reinsurance underwriters
13th November 2017
Sompo International, the Bermuda headquartered specialty insurance and reinsurance firm formerly named Endurance, has announced the addition of two newly hired senior casualty reinsurance underwriters. Alison Wood and Lorene Phillips have both joined the Sompo International Global Casualty Reinsurance team in the role of Senior Vice President, International Casualty Underwriter. The ... Read the full article
Low ROE levels in 2017 could turn market: RBC Capital Markets
8th November 2017
At 3.2% above the 5 year risk free average European reinsurers' low Return On Equity levels could lead to a market turn, according to RBC Capital Markets. The biggest uncertainty surrounding the market in coming months is how wide the pricing uptick will be and whether or not it'll include prices ... Read the full article
Ironshore appoints three Specialty Casualty risk underwriters
1st November 2017
Ironshore has appointed three executives to underwrite specialty casualty risk in the excess underwriting unit, Iron-Excess, within its U.S. and London markets. Sonny Powers will lead the Iron-Excess Casualty unit in the U.S., while Owen Roddy and Oliver Ross will drive business growth for the Iron-Excess Casualty unit in the London ... Read the full article
Long-term demand for P&C reinsurance remains strong despite headwinds
23rd October 2017
Despite headwinds facing property and casualty reinsurers, according to McKinsey's recent report on the global reinsurance sector, the long-term market demand outlook remains strong. Factors driving demand in P&C lines of business are the impact of changing climate patterns, coupled with the fast-growing concentration of population and assets in hazard-prone areas, ... Read the full article
Canadian P&C re/insurers’ stable but feeling the heat
18th September 2017
Despite the low interest rate environment and growing threat to Canadian re/insurers from severe weather events, A.M. Best's outlook for the country's property/casualty and life sectors remains stable as these well-capitalised firms show pricing discipline and solid earnings. Possible earthquakes, economic volatility and regulatory changes are variables ahead of the industry ... Read the full article
Russell Group builds launches data provider service ALPS Casualty
4th September 2017
Russell Group has partnered with data providers Dun & Bradstreet to launch a matching service, ALPS Casualty, that matches and references each portfolio's insureds, allowing any insured to be identified through a universal identifier and thus enhancing the underwriting process. Russell Group CEO, Suki Basi commented on the launch of ALPS ... Read the full article
U.S. p/c industry sees continued credit rating improvement
31st August 2017
Credit rating for U.S. p/c industry was favourable, reflecting the stability of the sector with 86% of rating actions being affirmations and the rate of upgrades continuing to outpace those of last year, according to A.M. Best’s special report. The personal lines segment was given a stable outlook, but the sector ... Read the full article
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