Here we review GC Capital Ideas’ recent stories on the global COVID-19 pandemic.
Risk-Based Capital Stress Testing During COVID-19: As companies continue to navigate the repercussions of COVID-19, it is important that they understand the pandemic’s impact on risk-based capital (RBC). Insurers are dealing with COVID-19’s effects on assets and liabilities, both of which can affect capital levels.
Capital and The Insurance Industry During COVID-19: Vicky Carter, Guy Carpenter Chairman of Global Capital Solutions, International, recently spoke to Mark Geoghegan, Editor at The Voice of Insurance about capital in the (re)insurance industry during the COVID-19 pandemic. During their discussion, Vicky and Mark examine capital and the industry’s financial health, investor appetite for the insurance sector and the prospects for the emerging class of 2020.
Standard & Poor’s Outlook on COVID-19: Standard & Poor’s (S&P) recently changed its outlook for the global reinsurance sector to negative from stable, as it anticipates a number of negative rating actions and increasingly difficult business conditions for the sector over the next 12 months, according to a recent article from Guy Carpenter. S&P assigned a stable outlook to over 80 percent of global reinsurers and projects that reinsurers will not meet their cost of capital in 2020 for a third year in a row due to COVID-19 insured losses and lower investment returns.