P&C sector faces higher Q4 cat losses: KBW
P&C re/insurers face higher year on year catastrophe losses in the fourth quarter of 2018 results reflecting hurricane Michael, California wildfires, and some smaller events, but overall losses should be manageable, according to Keefe, Bruyette & Woods (KBW) analysts.
Pricing should reflect expected line-specific returns, KBW said, noting that it expects most commercial lines’ increases to strengthen into 2019 while workers' compensation rate decreases should decelerate. Personal auto increases should fade and reinsurance pricing should trend up modestly as demand growth outpaces (still-ample) capacity, according to KBW. “We expect 1/1 reinsurance pricing commentary to be slightly better than initial broker reports, reflecting initially-incomplete programmes,” analysts said in the report.
Hurricane Michael and the California wildfires should produce sizeable (albeit manageable) catastrophe and weather losses, the analysts noted. KBW expects roughly stable core accident-year margins in most lines besides as earned rate increases should mostly offset higher loss trends. In personal auto, earned rate increases and higher gas prices year on year still imply higher margins year on year, although previously better-than-expected personal auto claim frequencies should get a little worse, analysts noted. In workers compensation rate decreases coincide with reportedly accelerating loss trends while overall, rising casualty loss trends should depress most insurers’ reserve releases, the report added.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
MS Amlin CFO resigns to join Hastings Group
Lloyd’s should focus on US, not emerging markets, says new LMA chair
US P&C faces slower reserve releases, higher loss trends
HDI Global Specialty downgraded by AM Best
Munich Re backed on-demand insurtech Trov expands in US
Beazley bolsters European financial lines team with Hiscox, Aon hires
January 1 renewals rate movement limited: Guy Carpenter
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze