In a third-quarter 2023 earnings call, Everest’s President and CEO, Juan Andrade, highlighted a notable surge in demand for reinsurance capacity as clients seek to bolster their risk coverage.
Andrade’s insights indicated that the need for reinsurance is on the rise, and Everest is well-positioned to meet this growing demand.
Regarding the supply and demand dynamics, Andrade pointed out, “There’s still definitely a supply and demand imbalance that’s out there. Whether that’s $100 billion or $40 billion, it doesn’t really matter because it’s a pretty big gap between supply and demand.”
“We tracked over 80 material events globally this quarter, resulting in a nine-month year-to-date industry loss estimated at roughly $93 billion. The industry is on course for another $100 billion loss this year. This reinforces the need for continued underwriting discipline, and for additional pricing increases across all lines,” Andrade said.
Andrade also highlighted the positive outlook for the January 1st, 2024 renewal, stating, “Expectations for pricing and terms and conditions in the global property market are now well understood, which will make future renewals more orderly.”
Jim Williamson, EVP, Group Chief Operating Officer, and Head of Reinsurance, added, “We see very strong signals that our clients are looking for more property cat capacity. There was pent-up demand at 1/1 of 2023 that ultimately didn’t get fulfilled, and so they’re now back in the market and seeking capacity.”
“We’re not seeing anything in the environment right now that really fundamentally changes the pricing trajectory or the trajectory of this business going into 1/1,” he added.
Williamson further reinforced this sentiment, saying, “Irrespective of how much capital is available to underwriters in our industry, every underwriter wants to get paid more for the risks they’ve been taking.”
In conclusion, Andrade expressed confidence in Everest’s ability to navigate these challenges, stating, “We are extremely well positioned with the expertise, global capabilities, and financial strength to seize this generational market opportunity and optimise the portfolio for the long term.”
