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US - Cat bonds keep re/insurers well-capitalised for 2021 hurricanes: Fitch

Property and casualty (P&C) insurance firms in the US and global reinsurance firms are well-capitalised for the 2021 Atlantic hurricane season and the high-levels of catastrophe bond issuance seen recently will assist them in absorbing any major loss events that occur.

Property and casualty (P&C) insurance firms in the US and global reinsurance firms are well-capitalised for the 2021 Atlantic hurricane season and the high-levels of catastrophe bond issuance seen recently will assist them in absorbing any major loss events that occur.

That’s according to rating agency Fitch, who noted that “U.S. property/casualty (re)insurers are bracing to absorb large potential catastrophe losses with projections for another above-average hurricane season.”

This year though, the US P&C re/insurance market, as well as the major global reinsurance firms, are “largely well capitalized and positioned to withstand a significant hurricane event in 2021,” Fitch Ratings believes.

An area of greater concern is, as ever, the Florida homeowners insurance market, where capital levels are not all so robust.

Senior Director at Fitch Ratings Brian Schneider said, “Florida homeowners’ writers less favorable capital position creates a strong dependence on global reinsurers and the state sponsored Florida Hurricane Catastrophe Fund for underwriting capacity and protection against severe hurricane events.”


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