In the news
Matthew was downgraded to a post-tropicalcyclone, according to a National Hurricane Center advisoryat 5 a.m. ET on Oct. 9.
Concerns that losses stemming fromMatthew might touch $20 billion have now subsided. According to modelled loss simulationsfrom RMS, the probability of U.S. wind-only losses from Matthew reaching $20 billionis now only 9.4%,down significantly from its previousestimate of a 41.9% chance, The InsuranceInsider reported.
While it is still early days to quantify the loss, the industryis now expecting losses to come in the range of $5 billionto $15 billion, according to a separatereport from The Insurance Insider.
Kinetic Analysis cut its estimate forinsurance losses from Matthew to $4 billion from $25 billion, reported, citing a spokesman forthe catastrophe modeling firm.
Fitch Ratings does not expect Matthew to present a major capital challengefor Florida property insurers.If insured losses exceed $10 billion, a greater proportion of losses will be borneby reinsurers as opposed to primary companies, according to the rating agency.
Heritage Insurance Holdings Inc. said it expects to takelosses of $500 millionfrom Matthew, well within its $1.9 billion catastrophe reinsurance coveragetower.
Downsized but internationally active MetLife Inc. could still trigger a global systemically important insurer designation, althoughit is shedding its domestic variable annuity retail business, to an S&P Global Market Intelligencereport. After the anticipated separationof its retail business unit, MetLife will tumble from the third-largest global insurer,as measured by total assets, to the sixth.
The Kansas Insurance Department approvedall rate changes for 2017 individual and small group health plans as requested byinsurance companies, The Wichita Eagle reported.The proposed rate changes ranged from a drop of 1.37% to an increase of 49.4%. ,Blue Cross & Blue Shield of KansasCity and Medica will sell individual plans in the state.
The U.S. presidential nominees clashed over the Affordable Care Act and the future of thenation's health care coverage on Oct. 9 during the second of three debates. In responseto an audience question about lowering the cost of healthcare, Democratic nomineeHillary Clinton said she would fix what is "broken" about the ACA ratherthan repeal it. Republican nominee Donald Trump respondedby calling the ACA "a disaster" and reiterating his call to "repealit, and replace it with something absolutely much less expensive, and somethingthat works."
National GeneralHoldings Corp. completedthe acquisition ofStandard Mutual Insurance Co.following the conversion of Standard Mutual to a stock company named Standard Property& Casualty Insurance Co.
The inroads ProgressiveCorp. has made in winning business through comparative rater applicationsprovides insight intothe steady improvement the company has recently achieved in agency auto policiesin force growth.
Financial news in otherparts of the world
Middle East & Africa:
The day ahead
Earlymorning futures indicators pointed to a higher opening for the U.S. market.
In Europe,around midday, the FTSE 100 was up 0.08% to 7,050.20, while the Euronext 100 hadrisen 0.35% to 880.48.
On the macro front
TD Ameritrade'sinvestor movement index is due out today.