On November 5, 2021, DBRS Limited (DBRS Morningstar) changed the trends on CGIC to Positive from Stable. DBRS Morningstar confirmed the Financial Strength Rating and Issuer Rating of the Company at A (low). DBRS Morningstar also confirmed the Non-Cumulative Preference Shares rating of the Company at Pfd-2 (low).
Canadian property and casualty (P&C) insurers have demonstrated financial resilience in handling ever-increasing weather-related losses through effective risk management. However, as climate risk increases and severe weather events become more correlated around the world, insurance and reinsurance companies may opt to withdraw property insurance coverage in regions they deem too costly to insure, or they may avoid insuring certain risks altogether. As a result, the availability of insurance (i.e...
On November 13, 2020, DBRS Limited (DBRS Morningstar) confirmed the Financial Strength Rating and Issuer Rating of Co-operators General Insurance Company at A (low). DBRS also confirmed the Non-Cumulative Preference Shares rating of the Company at Pfd-2 (low). All trends are Stable.
The majority of property and casualty reinsurance providers have reported half year results for 2020, and it is apparent that many have recovered from the effects of the financial market's volatility that followed the lockdown of global economies in the first quarter of the year due to the Coronavirus Disease (COVID-19) pandemic.
As if the ongoing disruptions caused by the negative impacts of the Coronavirus Disease (COVID-19) pandemic were not enough to keep property and casualty (P&C) insurers busy in 2020, on May 21, 2020,forecasters in the Climate Prediction Center of the National Oceanic and Atmospheric Administration (NOAA) predicted that the Atlantic hurricane season, which runs from June 1 through November 30 each year, will have above-normal hurricane activity in 2020. The forecast envisages a 60% chance of an a...
On June 13 and 14, 2020, a series of extreme thunderstorms struck southern Alberta, Canada, resulting in hail and flooding that caused extensive damage. According to preliminary estimates by the Insurance Bureau of Canada, the thunderstorms caused approximately $1.2 billion in insured losses, with total economic losses exceeding $1.7 billion as thousands of vehicles, homes, and agricultural lands sustained significant damage. This natural catastrophe became Canada's most expensive thunderstorm-r...
Given the relative maturity of the P&C insurance market in Canada there is a direct relationship between economic activity and premium levels. Based on DBRS Morningstar's latest moderate macroeconomic scenario for Canada in 2020, we expect that the growth of P&C insurance premiums in Canada will be severely limited and could even turn negative. Alternatively, under an adverse scenario, we anticipate that the volume of P&C insurance premiums will drop in 2020. Both scenarios contrast with strong ...
DBRS Limited (DBRS Morningstar) released a commentary entitled “P&C Insurance: Regulatory Oversight Essential for Broad Adoption of ESG Reporting Principles,†which discusses the importance of environmental, social, and governance (ESG) risk factors in assessing the financial strength of a property and casualty insurance company, as well as the need for standardization to facilitate comparability across geographic regions and between companies operating in similar sectors.
DBRS Limited (DBRS Morningstar) released a commentary entitled “P&C Insurance: The Conundrum of Business Interruption Coverage during the Coronavirus Pandemic†that discusses the impact of retroactively forcing property and casualty (P&C) insurance companies to assume business interruption losses in contracts that originally excluded pandemics as a covered peril.
This commentary highlights the factors that, if impaired, could result in negative rating pressure on a property and casualty insurance company’s Financial Strength Rating as the economic impacts of the Coronavirus Disease (COVID-19) unfold.
DBRS Morningstar released a commentary entitled “Coronavirus: Likely Increases in P&C Insurance Claims in Certain Business Lines; Financial Markets’ Volatility Will Affect Investment Portfolios†that discusses the ways the Coronavirus Disease (COVID-19) can be expected to affect the Property and Casualty insurance industry.
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