Ratings agencies agree that Validus Holdings should not see significant negative repercussions from its proposed acquisition of Flagstone Reinsurance Holdings, as statements today indicate Validus ratings will remain unchanged.
Ratings agencies agree that Validus Holdings should not see significant negative repercussions from its proposed acquisition of Flagstone Reinsurance Holdings, as statements today indicate Validus ratings will remain unchanged.
Two major wildfires continue to burn in Colorado and New Mexico weeks after lightening ignited the infernos, and the active blazes have prevented insurers from assessing the extent of homeowner losses.
Rates are rising, multiple studies agreeeven global-property rates in non-catastrophe-exposed areas. But at least one firm, ALIRT Insurance Research, maintains the industry has not yet reached its tipping point for a hard-market turn.
After suffering through a year of elevated property losses and poor underwriting results in 2011, U.S. commercial-lines insurers are positioned to deliver improved operating results this yearbut carriers will still struggle to reach previous profit marks, one analyst says.
Anumber of recent reports conclude that commercial-insurance rates were up in 2011s fourth quarter and are likely to remain in positive territory through 2012. But factors such as macro-economic conditions and loss-cost trends will limit insurers ability to generate underwriting profits, and carriers will have to look elsewherefor example, mergers...
While three separate analyses of the insurance and reinsurance markets in 2012 were unable to determine whether the industry will be able to sustain recent rate increases, all agree that the industry will face challenges this year ranging from the economy to the implementation of new regulations.
Flooding in Thailand that began in July and peaked in October and November could result in insured losses of more than $10 billion, according to the latest estimates.
A recent survey of commercial insurers indicates rates are beginning to harden, but brokers speaking at the Reinsurance Rendezvous in Monte Carlo paint a picture of an uncertain market, particularly for reinsurers, and of executives searching for direction on how to be profitable.
Insurers and reinsurers will not likely see a direct impact from Standard & Poors recent downgrade of U.S. long-term sovereign debt, experts say, but the underlying economic conditions that led to the downgrade could cause some of the same issues experienced in 2008 to re-emerge.