Aspen Re, the reinsurance segment of Bermudian re/insurance group Aspen Insurance Holdings Limited, saw rate increases of 5.3% in the first-quarter of 2018, and while rates moderated at the April renewals, the firm’s already seeing increases of up to 7.5% for loss-affected accounts incepting in June.
Aspen’s first-quarter results commentary is the latest to note improved rates across the reinsurance industry as a result of 2017 catastrophe events, and the Bermuda-based firm expects positive rate momentum to continue despite a moderation during the Japanese-focused April renewals.
Group Chief Executive Officer (CEO), Chris O’Kane explained during the insurer and reinsurer’s Q1 2018 earnings call that it’s already completed a “reasonable amount” of Florida and other wind renewals set to begin in June.
“For loss affected accounts, we’re seeing rate increases up to 7.5%, and accounts without losses are renewing in the range of flat to plus 5,” said O’Kane.
This is on the back of rate increases that were flat for Japanese renewals and up 4% excluding Japan across its April renewals. Which follows an overall rate improvement of 5.3% in the first-quarter of 2018, driven largely by an 8% increase in property cat business, although other property and casualty and specialty increased by around 6%, 4% and 4%, respectively.
The increased pricing environment in the first-quarter saw Aspen grow its property cat premiums in North America and Europe, and by eliminating the bottom 5% of its portfolio, “by concentrating on better priced business and proving the average rate on the continuing book,” total gross written premiums in Aspen Re grew 10% when compared with Q1 2017.
“The vast majority of renewals are still to come and we will report on them in our next earnings call,” said O’Kane.
