Broker Willis Re has reported that capacity for the property sector remained strong, both in the U.S and globally, despite April 1st renewal price increases being lower than anticipated.
In its latest reinsurance renewals report, Willis Re found that April 1st renewal price increases were tempered by weak increases at January 1st renewals, by the latest vendor model changes, and by clients with net retained losses resisting requested increases.
Nevertheless, Willis Re claimed that capacity in the U.S property reinsurance space remains plentiful, with non-traditional and collateralised markets contributing to increases in available capital and competing for participations.
Capacity is comparably healthy across numerous other territories, with reinsurers still looking to deploy additional capacity in Japan, after anticipated rate rises were capped by an overabundance.
Latin America saw modest adjustments to prices due to limited catastrophe losses, whilst additional capacity was available in the Caribbean as reinsurers looked to increase participation and as higher rates attracted new entrants to the market.
Similarly, in Korea and India, capacity reinsurance remained broadly stable despite benign reductions in pricing at April 1st renewals.
In the same report, Willis Re also observed that reinsurance renewal pricing was ‘broadly flat’ at the April 1st contract negotiations.
