Fitch Ratings has affirmed its neutral outlook for the European insurance sector for 2025, reflecting operational and business conditions, disciplined pricing, easing inflation and moderating P&C premium rates.
Rating actions
Despite substantial economic and capital market volatility, the US commercial lines market has maintained its strong underwriting performance, while the sector has also managed to sustain risk-adjusted pricing across most product lines amid moderating inflation.
US personal lines carriers’ improved underwriting performance, better catastrophe risk management practices and rising investment yields have prompted AM Best to revise its outlook on the sector to stable from negative.
AM Best has upgraded Texas Mutual Insurance Company’s financial strength rating to A+ (Superior) from A (Excellent) and its long-term issuer credit rating to “aa-” (Superior) from “a+” (Excellent), with a revised outlook from positive to stable.
AM Best has revised the outlook from stable to positive on the A financial strength rating and 'a' long-term issuer credit rating of Group Ark Insurance Limited (GAIL), pointing to the (re)insurer’s “effective cross-cycle underwriting management” and sub-90 combined ratio over time.
AM Best has revised its outlook for the five companies operating under the Berkshire Hathaway Guard Insurance Companies from stable to negative, while affirming the A+ (Superior) Financial Strength Rating and “aa-” Long-Term Issuer Credit Ratings.
AM Best has revised the outlook for Rockford Mutual Insurance Company (RMIC) to negative from stable while affirming its financial strength rating of A- (Excellent) and long-term issuer credit rating of “a-” (Excellent).
Florida insurance commissioner Mike Yaworsky has underlined the stability of the state’s property insurance market, pointing to rating upgrades for three Florida special tax bonds.
Rental insurtech Steadily announced that it has activated its carrier, Steadily Insurance Company, which has received a financial stability rating of A, Exceptional from Demotech.
Cyber risks and escalating geopolitical conflicts have the potential to pose investment risks and potentially ratings actions for European insurers, according to S&P Global Ratings’ Volker Kudszus.
JMP Securities has downgraded its outlook for Root to market perform following its recent strong share price rally, while price targets for fellow insurtechs Lemonade and Hippo have been raised.
A “significant improvement” in US personal auto and homeowners’ underwriting profitability has spurred S&P Global Ratings to raise its sector view on the country’s P&C market to stable from negative.
European P&C insurers are expected to see unchanged solid margins heading into 2025, according to S&P’s latest outlook, with progressive dividends and share buybacks among listed insurers actively reducing capital surplus.
With growth in the global delegated underwriting authority enterprise (DUAE) segment showing no sign of slowing and the sector continuing to invest in talent and technology, AM Best has maintained its positive outlook on the market.
India’s state-backed reinsurer GIC Re has targeted growth of its international book, taking advantage of its recent rating upgrade from AM Best, according to managing director and chairman Ramaswamy Narayanan.
