Although Swiss Re has just posted its half-year results for 2019, reporting strong overall growth across the group, Swiss Re Corporate Solutions reported a net loss of USD403 million and a combined ratio of 132.8% in the first six months of 2019 as a result of decisive management actions to reposition the business together with losses stemming from natural catastrophes and man-made losses including those seen in the aviation and space sectors.
In news released overnight, The Insurance Insider has learned Swiss Re Corporate Solutions is withdrawing from the general aviation and space markets globally. Swiss Re have subsequently confirmed this to be the case and as a consequence they will be closing the local arm of their Aviation business here in Australia.
As always Aerosure will continue to keep our clients fully informed of further updates and solutions already being developed where required, however should you have any immediate queries please do not hesitate to contact us.
There has been further consolidation in the Aviation Insurance market.
W.R.Berkley has decided to exit the Aviation line of business. This exit will be conducted over the next few months and will be in line with all state regulations and notice requirements.
During the period of run off, Berkley Aviation will honour all outstanding quotes and continue to service all of its Aviation business.
We will keep you updated of any further market developments, however if there is any impact on your policies we will be in contact with you directly to discuss in further detail.
Lloyd’s have provided a summary of their Results and Financial Highlights for Analysts in March 2018.
A high level overview is that 2017 has been a difficult year in which Lloyd’s have seen their Combined Operating Ratio slip from 97.90% in 2016 to 114.0%.
Drivers to this have been the continuing downwards pricing trends and exposure to the large catastrophe losses of 2017. Lloyd’s exposure to these catastrophe losses at this stage is estimated to be US$6B.
Lloyd’s average annual losses in this large loss sector during the preceding last 15 years has been just over US$2B. Whilst clearly impactful in 2017, Lloyd’s Combined Operating Ratio assessment of all of the business classes shows all of them to be running in excess of 100%.
The above said, Lloyd’s Central Fund has benefited from good investment returns and Lloyd’s retains healthy net resources after seeing growth of their Central assets by 4% from 2016 to 2017.
With Aviation Loss Ratio’s above 100%, we can expect insurers to impose premium increases into the future.