Kroll Bond Rating Agency (KBRA) releases research on the 2020 Atlantic hurricane season, which officially ended on November 30. KBRA believes the record number of storms this year will leave behind near- and longer-term implications for the property and casualty (P/C) insurance market.
In an unprecedented storm season, property insurers were subject to a near constant onslaught of weather events. Fortunately, and despite the high storm frequency which included one major hurricane landfall, insured losses were generally modest on an industry level. However, the cumulative effect from these events combined with insured catastrophe losses from tornadoes, wildfires, and straight-line wind (derecho) have weakened the capital bases of some insurers.
KBRA continues to believe the overall P/C segment remains sufficiently capitalized and generally well positioned to manage through these losses. However, as 2021 approaches, insurers (especially smaller, regionally concentrated companies) will need to evaluate their books of business, address risk-adjusted capitalization, and plan for challenging reinsurance renewals.
Click here to view the report.
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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