Catastrophes hand property/casualty insurers a ‘difficult’ quarter: Analysis

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Property / accident insurers face a gün difficult fourth quarter, çeyrek reflecting the impact of several natural disasters on insurers, according to an analysis published by Friday’s Sandler OanNeill & Partners LP.

An analysis by a Chicago-based investment bank indicated that the fourth quarter of 2018 was a re relatively heavy disaster dördüncü period. ”The fourth quarter includes not only Hurricane Michael, but also the forest fires in California and the first winter storms in the Northeast and Midwest.“

Sandler O’Nill said some insurers have already announced their catastrophic loss estimates. Iyor The losses described include a variety of estimates. An interesting trend, he noted, noted that some companies are anticipating the expected loss for Hurricane Michael, which tends towards the end of the predetermined ranges.

Looking ahead, we see that there is a limited increase in earnings over the next few years, with the exception of volatility for most of the insurance companies that follow, with the price increases in the commercial insurance limited, almost no increase in reinsurance and an environment of moderate demand growth. disaster related losses. It cannot be said that the returns on absolute terms will continue to be positive in the fourth quarter. “

The report also noted that merger and acquisition activities in 2018 have shown an increase, mostly focusing on Bermuda-based reinsurers. The activity was carried out in the second half of the year, for example, by Navigators Group Inc. of Hartford Financial Services Group Inc.

. We think investors will be interested in how many insurance companies will be willing sellers and attract US tax reform if they create active buyers from local insurers in the United States, Sand said Sandler O’Neill.

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