Bermuda Market to have a meaningful share of La Wildfire Insured Tab: Fitch

Fitch Ratings has noticed that the Bermuda market will have a meaningful proportion of insured losses from the recent wildfires in California for both primary business and reinsurance, but it does not expect Ratings to be affected in view of copious capital levels.

According to a new report from Fitch, it is expected that insurance results for Bermuda-based re/insurance companies will follow in 2025 due to pressure on premium rates and rising loss costs.

At the same time, the rating agency observed that the total relationship for Bermuda Re/Insurance Companies will approximate 90% for full -year 2024, marking an increase from 86.5% by 2023.

“Disaster loss represents 7-8 percentage points on 2024-gathered conditions, up from 3.2 points in 2023,” Fitch explained.

Fitch also emphasized that the potential influence on the pricing of reinsurance of renewal of the reinsurance of fires will depend on the ultimate loss level and the distance of such an event in relation to the expectations of disaster loss.

The highest estimate of the event comes from Corelogic to $ 35 billion to $ 45 billion. Recently, Verically Insured Losses from the Fire Fire of between $ 28 billion and $ 35 billion, and Karen Clark & ​​Company said hit to the industry will be close to $ 28 billion.

Elsewhere in the report, Fitch said the renewal of reinsurance of January 2025 demonstrated that the reinsurance market cycle is “past its peak”, with stable at softening prices, as increased supply was more than sufficient to meet higher demand.

Fitch has suggested that market conditions are further softened by 2025 Midyear Renewals, although risk -adjusted returns will remain favorable as insurance discipline is maintained.