trending Market Intelligence /marketintelligence/en/news-insights/trending/7scxotcjn80opeyvlhiehw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Fitch: Despite massive losses, LatAm reinsurance sector's capital still sound

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report

Fintech

Fintech Funding Flows To Insurtech In February

Lemonade Growing Premiums Faster Than Esurance's Homeowners Business Did


Fitch: Despite massive losses, LatAm reinsurance sector's capital still sound

The Latin America reinsurance industry's capital position is still sound, despite having seen record losses in 2017 on the back of major catastrophic events, according to Fitch Ratings.

Catastrophe economic losses in the region hit US$104 billion during 2017, more than five times the prior record loss of US$20 billion in 2013. The bulk of the losses came from two major storms — hurricanes Maria and Irma — and two earthquakes in Mexico. Together, those four events made up US$101 billion of the year's economic losses and some US$36 billion in insured losses, Fitch said.

However, the rating agency noted that the reinsurance industry was able to absorb those losses without a taking a significant capital hit. LatAm reinsurers use retrocession to manage balance-sheet volatility and follow adequate reserving practice; as a result "the availability of their reinsurance capacity was not compromised as much relative to previous years with similarly sized losses," Fitch said in a July 26 report.

For 2018, the rating agency expects the industry's profitability to improve given the probability that catastrophe losses will return to more normal levels, while reinsurers should enjoy a "marginally positive pricing environment" and growth of ceded premiums in certain LatAm countries.

"Intense competition from global reinsurers and the large reinsurance capital supply have forced LatAm reinsurers to strengthen their strategies towards their regional markets, aiming to capture a larger share of LatAm's increasing ceded premiums," Fitch wrote.

Fitch noted that the large losses suffered last year could drive increased demand in Latin America.