Small reinsurers could face extra pressure says Fitch
The reinsurance sector will see lower profits again in 2017 with falling premiums and low investment yields according to a new report from Fitch.
The ratings firm believes that smaller reinsurers focused on commercial lines could see particular pressure due to their less diverse portfolio. It also warns that thinner underwriting margins could leave the industry more exposed to greater major loss claims.
Fitch notes the fall in rates due to increased competition and forecasts that some reinsurers will switch their focus from property to casualty, however that will ultimately lead to lower margins in that sector too.
Despite the pressures on revenue, Fitch’s outlook for reinsurers is generally stable.
Chubb adds dedicated broker channel to workplace benefits business
Chubb Insurance has expanded its voluntary workplace benefits business of its Combined Insurance affiliate with a dedicated broker-focused channel.
The program of benefits offered by Chubb Workplace Benefits includes a line of supplemental insurance products, including accident, critical illness, hospital indemnity, life and disability income.
The products will be available via benefit brokers, agents, and consultants.
"The voluntary benefits space is one of the fastest areas of growth in the benefit broker channel," said Ed Clancy, Executive Vice President, Global Accident & Health and Life, Chubb Group. "Our continued investment in this space follows the successful growth we've had over the last three years. There is a broader platform for growth available to us now that we can leverage Chubb's strong reputation in the brokerage community and our extensive national branch office infrastructure."
1 billion profit for Munich Re
Global reinsurer Munich Re has announced profit of almost 1 billion Euros (U$1.13 billion) for the second quarter of 2016. The figure has been achieved despite higher expenses from major losses and investment in its strategy program.
"Overall, we have achieved an above-average result for the second quarter. And that was despite higher natural catastrophe expenditure in the second quarter – arising from wildfires in Canada and earthquakes in Japan – after many quarters without major losses," commented CEO Nikolaus von Bomhard.
Gross premiums written were down 4.3 per cent but in volume terms would have decreased 1.4 per cent if exchange rates had remained static.
