Unfavourable reserves could stimulate reinsurance demand

Third-quarter results for both Travelers and RLI cite unfavourable reserve developments as a contribution to weaker underwriting returns, underlining a potential need for greater reinsurance protection as reserves fall further at the same time that attritional catastrophe losses climb. Both Travelers and RLI Corp have reported their third-quarter 2016 results, and read the full article →

Reserves suggest reinsurance cycle is at an inflection point: JLT Re

It’s likely that the insurance and reinsurance industry will find itself in “danger of releasing reserves” despite the suggestion that accident year redundancies are running low, suggesting the cycle has reached an inflection point, according to reinsurance broker JLT Re. “Reserving levels are always under close scrutiny and this is especially read the full article →

P&C reserves won’t always be “reliable source of earnings,” warns JLT Re

A notable moderation in reserve redundancies and a spike in the occurrence of deficiencies across the global Property & Casualty (P&C) sector, suggest it might be wrong to assume reserves will always have a positive contribution on earnings, according to reinsurance broker JLT Re. In today’s softening and challenging reinsurance marketplace read the full article →

Declining reserve releases could cut earnings by 6%: Morgan Stanley

Analysts at Morgan Stanley predict that reserve releases will progressively decline in the coming months and years, contributing to as much as a 6% decline in P&C insurance and reinsurance earnings. Morgan Stanley has issued a warning to property and casualty (P&C) insurance and reinsurance firms following the recent high levels read the full article →

Reinsurance reserve releases to slow, casualty rate declines to intensify: KBW

Reinsurance reserve releases have been slowing over recent quarters for many in the sector, with the fourth-quarter of 2015 seeing more reinsurers reporting smaller releases, rather than larger, a trend that analysts at Keefe, Bruyette & Woods expect will continue. Reserve releases have been providing a much-needed boost to reinsurer returns read the full article →

Reinsurers reserves running low, warns Allianz Re CEO: Bloomberg

Reinsurance company claims reserves are beginning to run low meaning that the releases seen in recent years to boost profitability in a softening market may not be as easy to continue, according to CEO of Allianz Re Amer Ahmed. Speaking to Bloomberg in an interview in Munich, Ahmed said; "I don’t read the full article →

Re/insurer reserves releases to shrink, threatens earnings: Morgan Stanley

Reserve releases for property & casualty insurance and reinsurance companies are expected to shrink over the next few years, with what was 15% of operating income on average falling to 11%, presenting a real risk to P&C re/insurer earnings, according to Morgan Stanley analysts. Reserves have been seen to boost insurance read the full article →

S&P warns on reinsurers protecting profits through reserve releases

In the current soft reinsurance market environment, some reinsurers have been relying on prudent reserving and timely releases of capital to protect or enhance their profits. But with major losses remaining absent from the market, dwindling reserves could come back to bite. Rating agency Standard & Poor's warns today that reinsurers read the full article →

What happens when the music stops (reserve releases run dry)?

The non-life reinsurance industry has been running on reserves in recent years. With large catastrophe losses notably absent and prior year reserve releases buoying results by 5% to 8%, perhaps the recent strong performance of reinsurers is a mirage? Swiss Re dives into this issue in its recent economic outlook report read the full article →

Bill seeks to make D.C. an international financial center for catastrophic insurance reserves

A new bill which has been introduced this week seeks to make the District of Columbia into an international financial center for catastrophic insurance reserves to rival the likes of Bermuda and the Cayman Islands. Congresswoman Eleanor Holmes Norton has introduced the District of Columbia National Disaster Insurance Protection Act read the full article →