Reinsurance News
Catastrophe reinsurance
Catastrophe reinsurance news includes coverage of the main catastrophe reinsurance renewals, pricing trends and market developments, as well as analysis of reinsurance market exposure to major natural catastrophe loss events.
The catastrophe reinsurance market remains a core component of global reinsurance and one of the most competitive sectors.
Read all our catastrophe reinsurance news below.
IAG maintains $10bn cat reinsurance but increases first event retention
9th January 2023
Australian insurer IAG has completed its 2023 catastrophe reinsurance renewal, maintaining a flat gross protection cover at up to $10 billion, same as in 2022; its first event retention was increased “reflecting inflation and the global reinsurance market impacts”. The main cover provides gross protection for catastrophe losses of up to ... Read the full article
Cat tops the list of risks that cedents should be keeping in mind for 2023: Johansmeyer, PCS
19th December 2022
Verisk Insurance Solutions’ Head of PCS, Tom Johansmeyer, spoke with Reinsurance News about the types of risks that cedents should be keeping front of mind for 2023. “Cat is obviously top of the list, with a particular focus on Florida. That’s because, much as armies prepare to fight their last war ... Read the full article
Lloyd’s has headroom to sensibly grow catastrophe book: Tiernan
7th December 2022
The Lloyd's insurance and reinsurance market has "headroom" to grow its catastrophe book of business sensibly in the hardening market, according to Chief of Markets Patrick Tiernan. Tiernan was speaking this morning during his delivery of a Q4 message to the market and explained that despite plans being submitted for the ... Read the full article
Centauri reports Ian losses ran less than halfway up its reinsurance tower
24th October 2022
Jamie Sahara, President of Applied Underwriters, speaking on behalf of its sister company, Centauri, has suggested that the firm continues to stand strong following Hurricane Ian, having run less than halfway up its catastrophe reinsurance tower. Sahara cited the firm's prudent reinsurance approach, as well as staff dedication as a show ... Read the full article
Cincinnati Financial estimates cat losses of $252m in Q3
21st October 2022
Cincinnati Financial Corporation has announced that its consolidated Q3 results are expected to include pretax catastrophe losses of approximately $252m, representing an impact on the Q3 2022 combined ratio of approximately 13.9 percentage points, based on estimated property casualty earned premiums. The catastrophe loss estimate includes $220m from Hurricane Ian, excluding ... Read the full article
Global average annual insured losses from extreme events in excess of $120bn: Verisk
5th October 2022
Verisk Extreme Event Solutions has released its 2022 Global Modelled Catastrophe Losses Report, estimating that on an annual average basis, catastrophes around the world are expected to cause around $123bn in insured losses compared to an average of $74bn in actual losses over the past 10 years. According to Verisk’s report, ... Read the full article
Reinsurers diverge on Florida cat risk: Moody’s
16th September 2022
Reinsurers are showing a diverging appetite for Florida property catastrophe risk, says Moody’s, ahead of further anticipated price increases and coverage constraints going into 2023. The rating agency noted that many reinsurers chose to hold steady or cut their Florida exposures during the June 2022 renewals, in an effort to improve ... Read the full article
Cat risk contributing only marginally to reinsurer returns: S&P
6th September 2022
Analysts at S&P Global Ratings are expecting natural catastrophe business to contribute only about 2.5 percentage points to return on equity (ROE) for the top 21 global reinsurers in 2022. And this is if losses remain within annual budgets, which remains uncertain given that exposure growth, inflation, and elevated losses from ... Read the full article
ALIRT warns of “bellwether” regulatory trends in US cat states
24th August 2022
Analysts at insurance research firm ALIRT have warned that the industry should remain attentive to the experience of residual market mechanisms in the most catastrophe-prone US states, which it says are an “important bellwether of availability and affordability trends.” In a new report, ALIRT assessed the residual homeowners market trends in ... Read the full article
London Market could benefit from attractive property cat reinsurance lines: Goldman Sachs
23rd August 2022
Analysts at Goldman Sachs believe that London Market (LM) names can benefit from the current tailwind of cat reinsurance lines as price increases earn through to the P&L. LM names have focused on growing profitable business lines with attractive rates and, according to Goldman Sachs, property cat reinsurance is exactly the ... Read the full article
Underwriting margins stabilize amid inflation concerns: AM Best
17th August 2022
A recent AM Best report suggests that there is a stable pattern of underwriting profits as companies are becoming more proactive about making explicit allowances for inflationary trends. Numerous business re-alignment initiatives have been taking place over the last three years, says the report. In addition to price increases and more restrictive ... Read the full article
Reinsurers continue to cut exposure to property catastrophe perils: AM Best
15th August 2022
A recent AM Best report suggests that companies continue to actively shrink their property cat exposures to avoid perils and reduce volatility. Some have even modified their organizational structures or exited the property cat space altogether, though most of the largest European players remain committed to catastrophe risks and continue to ... Read the full article
Reinsurers to absorb much of RMI’s South Africa & Australia losses
28th June 2022
South Africa headquartered financial services investment holding company RMI has disclosed details of its insurance subsidiary losses to catastrophe events in its home country and in Australia, and has reported how its reinsurance protection will interact with these losses. In South Africa, RMI was exposed via its OUTsurance Holdings Limited business ... Read the full article
Q4 cats thought to have triggered Travelers agg reinsurance recoveries
14th January 2022
Analysts are anticipating that Travelers will have made further recoveries under its catastrophe aggregate reinsurance program during the fourth quarter of 2021. There appears to be consensus among figures at Bloomberg, KBW and Morgan Stanley that the US primary insurer’s Q4 results – due next week – will reveal further aggregate ... Read the full article
Toa Re Europe sponsors $25mn private cat bond
10th January 2022
Toa Re Europe, the Switzerland-based European reinsurance arm of Japanese group Toa Reinsurance Company, has sponsored $25 million of Silver Crane three-year catastrophe notes with selected investors. This private catastrophe bond will further develop Toa Re Europe’s collaboration with capital market partners, along with the renewal of its predecessor Blue Crane, ... Read the full article
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