Press Release - NOVEMBER 21, 2019

AM BestTV: 2019 Catastrophes Likely to Dent Reinsurance Earnings, Says AM Best Senior Financial Analyst


CONTACTS:
 Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 21, 2019
In this AMBestTV episode, AM Best Senior Financial Analyst Mariza Costa discusses how three straight years of catastrophe losses are likely to dampen reinsurers’ third-quarter earnings. Click on http://www.ambest.com/v.asp?v=catsreport1119 to view the entire program.

The 2019 catastrophe activity is expected to once again place a dent in reinsurance earnings. This comes after major catastrophe losses, favorable reserve development on prior accident years and persistently low interest rates.

Costa addressed what AM Best expects to see in terms of pricing due to these significant losses.

“At Jan. 1 and certainly April 1 renewals, AM Best expects rate increases will continue,” said Costa. “For June 1, AM Best is waiting to see what is going to happen. Additionally, AM Best believes that there needs to be more rates in Florida. Hurricane Dorian could have been a lot worse. It was supposed to hit Florida as a category five; however, it did not and turned. Companies need to be compensated for the risk that they are taking, particularly in Florida and now in other parts of the world such as Japan. We are optimistic that rates will increase again.”

To access a copy of this commentary, titled, “2019 CATs Expected to Once Again Dent Reinsurance Earnings,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=291059 .

Recent AMBestTV coverage includes:


  • U.S. Property/Casualty Industry Funded 90% of $146 Billion in A&E Exposures, Says AM Best Director: AM Best Director Brian O’Larte says the U.S. property/casualty insurance industry has funded about 90% of the estimated $146 billion in net U.S. asbestos and environmental (A&E) losses: http://www.ambest.com/v.asp?v=aande1119 .

  • Europe Reveals an Insurance Industry Adapting to Non-Stop Change, Say Execs at AM Best Briefing: Attendees to AM Best’s Insurance Market Briefing - Europe, held in London, said the ongoing evolution of Lloyd’s, insurance technology and regulatory frameworks are building a culture that is learning to anticipate and adapt to change: http://www.ambest.com/v.asp?v=imbe1119 .

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AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View AM BestTV episodes at http://www.ambest.tv .

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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