Navigators Group Inc. sees the improved pricing conditions in reinsurance markets as an opportunity for growth, with CEO Stan Galanski saying that he expects the Navigators Re division to benefit from “modest firming” of property reinsurance rates.
President and CEO of Navigators Group Stan Galanski said that the “extraordinary” level of natural catastrophe losses suffered in 2017 would “improve pricing and trading terms in the global property insurance and reinsurance markets.”
Which Navigators intends to capitalise on, with growth now expected for the Navigators Re reinsurance division.
Speaking during the firms fourth-quarter earnings call this week, Galanski said that he anticipates, “Navigators Re will be a beneficiary of modest firming and a property reinsurance market during 2018.”
As a result of the major catastrophe losses suffered in 2017, Galanski said that Navigators Re is, “Targeting mid single-digit rate increases on non-cat exposed treaties, with more meaningful increases in Latin American and U.S. catastrophe exposures.”
The company is, “Generally optimistic about profitable growth opportunities for Navigators Re across all product lines,” Galanski said, adding that a particular area of focus is on, “New initiatives like international agriculture.”
Galanski noted a hard market of sorts in U.S. property business, although with no guarantees over how long that will last.
Navigators looks set then to increase the size of its reinsurance book, where pricing allows, like a number of other players have been doing at the January renewal.
Galanski did note, however, that rather than looking at renewal rate increases the company would focus on price adequacy of business underwritten.