Bermuda Life Reinsurers Gain Ground Amid U.S. Annuity Growth
Life reinsurers based in Bermuda have recorded increased activity as annuity sales rise in the U.S. and recent regulatory changes
Reinsurance allows insurers to remain solvent by recovering some or all amounts paid to claimants.
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event.
Facultative coverage protects an insurer for an individual or a specified risk or contract. If several risks or contracts need reinsurance, they a renegotiated separately. The reinsurer holds all rights for accepting or denying a facultative reinsurance proposal.
Reinsurance reduces the net liability on individual risks and catastrophe protection from large or multiple losses. The practice also provides ceding companies, those that seek reinsurance, the capacity to increase their underwriting capabilities in terms of the number and size of risks.
Life reinsurers based in Bermuda have recorded increased activity as annuity sales rise in the U.S. and recent regulatory changes
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
Europe’s four largest reinsurers—Munich Re, Swiss Re, Hannover Re, and SCOR—reported strong financial results in 2024
How GLP-1 therapies are altering medical practices and insurance structures, prompting reinsurers to adjust their strategies to align with emerging risk profiles
U.S. Financial Stability Oversight Council said
there has been a shift in the composition of life insurers’ liabilities and an increase of private equity firms
U.S. life insurers have used reinsurance to reduce exposure to long-term care (LTC) insurance. The transactions strengthen balance sheets, improve capital efficiency
Lloyd’s has shared the results from the 2025 Lloyd’s Market Policies and Practices (MP&P) return with market firms, which shows continued progress towards an inclusive
EU insurance markets could gain if recent proposals for a bloc-wide public-private reinsurance scheme for climate-related losses move forward
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts were renewed on 1 January
McGill in partnership with FortuneGuard and ARX introduced a new war risk reinsurance facility to provide commercial property coverage in Ukraine
The London re/insurance market sees a growing push toward digital approaches. Enhanced underwriting stands out as a new direction for companies
A potential future human pandemic could cause $13.6 tn in global economic losses over five years, according to a systemic risk scenario from Lloyd’s
The insurance and reinsurance sectors face an expanding risk landscape, driven by critical challenges such as climate change and cyber threats
In 2024, reinsurance premium rates increased, interest rates remained high, and capital markets performed well. The composite achieved its highest ROE in five years
Reinsurers are likely to push for double-digit increases in U.S. casualty premium rates during the January 2025 renewals. This move aims to address higher loss costs
More than 50% of the 81 respondents think global reinsurers will raise prices in January reinsurance 2025 renewals, continuing recent increases driven by high claims inflation
Hurricane Milton is not likely to affect credit for rated property and casualty insurers and global reinsurers given very strong capital levels
Economic and insured losses from Hurricane Milton remain uncertain, Milton is the second major storm to hit the U.S. within two weeks, following Hurricane Helene
Reinsurers will push for double-digit increases in U.S. casualty premium rates when policies come up for renewal in January 2025 to keep up with higher loss costs
Since the war began, global reinsurers have bundled risks from Ukraine, Russia, and Belarus, excluding them from reinsurance contracts. This has reduced available capital and hindered economic stability
The positive reinsurance market outlook comes from de-risking as much as pricing with changes in terms and conditions, rising attachment points and tightening of wording
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn