Hannover Re has underscored North America as one of its major target markets for the coming year after the U.S.’s economic recovery has raised demand for reinsurance protection.
The reinsurance giant said its total premium volume for North America rose by 6.5 percent, an attractive margin of increase, especially when compared with the premium volume for continental Europe having contracted by 1.2 percent.
Hannover Re said; “The economic recovery in the U.S. led an increase in insurance premiums and hence to solid demand for reinsurance protection,” and attributes this to pressure on rates having considerably eased, adding that; “signs that they have bottomed out can now be seen across various lines of business.”
The Canadian Fort McMurray wildfires are reported to have driven significant rate increases under all property business programmes, as “attractive opportunities to grow the portfolio opened up in North America and above all Canada.”
In the U.S., the reinsurer benefitted from stable prices and rates in property & casualty renewals, and even witnessed a modest increase in smaller to mid-sized accounts in property treaties renewals, and saw slight growth in casualty business.
This growth is significant in that it comes despite the otherwise challenging market space for worldwide property and casualty reinsurance.
And Hannover Re is not alone in recognising the growing reinsurance market in North America; French reinsurance company, SCOR, also found opportunities for premium growth at the January 1st 2017 renewals, and said the U.S. represented ; “the largest source of growth over the period, U.S. clients have responded favourably to SCOR’s ambition to grow the underrepresented U.S. P&C book.
Victor Peignet, CEO of SCOR Global P&C, commented on the renewals; “We are finding opportunities in the US in treaties, we are expanding our business with MGAs, we are executing on the Channel Syndicate’s 2017 plan following its approval by Lloyd’s, and SCOR Business Solutions continues to deliver excellent profitability.”
Around 65% of SCOR’s total annual P&C division premiums were up for renewal in January and after the renewal the company revealed that 71% of the P&C treaties written were U.S., while 29% were specialty risks such as credit, surety and U.S. catastrophe risks.