The pandemic remains an earnings event for reinsurers, but why?

26-08-2020

The pandemic remains an earnings event for reinsurers, but why?

Pandemic-related losses are large but reinsurers look to have avoided the worst with a combination of financial discipline and the arrival of a hard market. Will efforts to inoculate themselves against the pandemic in H1 continue to be effective into the second half of the year, and how will it affect the wider market? Intelligent Insurer speaks to Robert Mazzuoli, director at Fitch Ratings, to find out more.

“The big four European reinsurers remain solidly inside their risk appetite framework.” Robert Mazzuoli, director at Fitch Ratings.

· Big four see increasing price momentum for June and July renewals
· Pandemic remains earnings event despite uncertainty on ultimate losses 
· Fitch estimates big four reinsurers have raised $15 billion in capital
· Reinsurers are "playing catch-up" with primary insurers

 

The fallout from COVID-19 is big for reinsurers but perhaps not as big as some predicted. Interestingly, despite large losses, one expert says the pandemic remains an earnings event.


COVID-19, pandemic, reinsurers, Mazzuoli, Fitch, earnings, price, Munich Re, Swiss Re, Hannover Re, SCOR, capital, bankruptcies, renewals, credit, surety

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