Reinsurance News
KBW
Renewal rate increases imply dramatically better returns: KBW
6th January 2022
Analysts at KBW have said that rate increases for property and casualty business at the January 1 reinsurance renewals imply “dramatically improved expected returns” for reinsurers. Although individual cedents' rate changes varied widely, property catastrophe reinsurance rate increases were measured at around 9% globally and 6.5% in the US, according to ... Read the full article
2022 will see sustained combined ratio improvement: KBW
23rd December 2021
Analyst at KBW have released a report which predicts sustained combined ratio improvement in 2022, and likely beyond. The continuing earn-in of rate increases that remain above even-elevated loss trends should translate into year-on-year initial accident-year core loss ratio improvement, and, assuming that the past, very typical cyclical conservatism embedded in ... Read the full article
Solid rate increases for most reinsurance lines in 2022, KBW says
16th December 2021
KBW analysts predict constrained capacity (particularly for aggregate retrocessional protection) and rising demand to drive solid, margin-expanding rate increases for most reinsurance lines. Property catastrophe reinsurance is singled out as a line set for particularly notable increases. During a virtual Bermuda tour, KBW say executives made repeated reference to diminished ILS capacity, ... Read the full article
Execs see positives in late renewals as market discipline persists: KBW
14th December 2021
After recent meetings with insurance and reinsurance company executives, analysts at KBW have highlighted how the late January 1st, 2022, renewals season could be positive. According to one executive, the late reinsurance renewal season is positive as in general, brokers look to place highest-quality accounts first in order to set the ... Read the full article
1/1 renewals “very late” as reinsurers maintain discipline: KBW
10th December 2021
Analysts at KBW have reported that 1/1 renewal negotiations for property and casualty (P&C) business are running “very late” as reinsurers have managed to remain disciplined on pricing in the lead-up. After meeting with several reinsurance company executives in Bermuda, KBW analysts are anticipating “solid rate increases overall” for P&C business ... Read the full article
Brokers expected to outperform carriers in Q3, KBW analysis indicates
19th October 2021
KBW analysts’ forecast for the third quarter results season are generally below consensus for the carriers and slightly above consensus for the brokers. Carrier estimate’s have been primarily driven by higher catastrophe losses, while broker’s are anticipated to achieve faster organic revenue growth. Notwithstanding slowly decelerating rate increases, analysts state that most ... Read the full article
Crop losses to weigh on 2021 underwriting profits: KBW
15th October 2021
Analysts at KBW have warned that crop losses will likely weigh on insurers’ overall underwriting profits for 2021, despite being overshadowed by more high-profile catastrophe losses such as Hurricane Ida and the European floods. While US crop underwriting losses should pale relative to the larger catastrophe losses in Q3, KBW notes ... Read the full article
Rate growth less abrupt but longer-lasting than past hard markets: KBW
17th September 2021
Analysts at Keefe, Bruyette & Woods (KBW) have suggested that rate growth in the current hardening market should continue for longer than in typical ‘three-year’ cycles seen in the past, despite the fact that increases have generally been less abrupt this time around. The firm believes that rate increases will be ... Read the full article
The Hartford’s $200mn Ida bill to fall outside reinsurance cover: KBW
13th September 2021
KBW analysts, while attending a competitor conference featuring executives from The Hartford, have highlighted an initial loss figure from hurricane Ida of $200mn, an estimate which encompasses all of the insurer's losses related to the storm. Furthermore, KBW has relayed that The Hartford doesn't anticipate reaching its minimum reinsurance layers, which ... Read the full article
Flooding in New York & New Jersey could lift hurricane Ida re/insured loss: report
2nd September 2021
After battering Louisiana as a Category 4 hurricane, storm Ida has caused severe flooding in New York and New Jersey which could add to the insurance and reinsurance industry loss, although this is still expected to remain under $25 billion, say analysts at Keefe, Bruyette & Woods (KBW). After making two ... Read the full article
AJG able to balance & reinvigorate Willis Re’s employee & client bases: KBW
17th August 2021
According to reports from Keefe, Bruyette & Woods (KBW), Arthur J Gallagher (AJG) will be able to stabilise and reinvigorate Willis Re’s employee and client bases, whilst expanding its reinsurance product capabilities and global footprint. It was announced ... Read the full article
Analysts see ‘more go-it-alone headwinds’ at WTW than Aon as merger collapses
26th July 2021
As news broke today that Aon's proposed combination with rival re/insurance brokerage Willis Towers Watson (WTW) has been terminated, analysts at Keefe, Bruyette & Woods (KBW) see greater headwinds for WTW moving forwards. The proposed $30 billion mega-merger of two of the world's largest brokers fell apart today as the ... Read the full article
KBW explores potential consequences of Aon / WTW deal break
12th July 2021
Analysts at KBW have modelled the potential impact on Aon and Willis Towers Watson (WTW) if their pending merger deal were to collapse. The firm believes that the brokers will ultimately end up selling more businesses to satisfy ongoing regulatory concerns, but the deal is currently facing significant roadblocks, including Read the full article
Reinsurance rate growth to boost run-off market: KBW
26th May 2021
According to reports from Keefe, Bruyette & Woods (KBW), industry executives are optimistic about the prospects for the run-off reinsurance market, which they say should benefit from rising pricing trends. KBW recently hosted a series of meetings with Florida and Bermuda re/insurance executives about their outlook on various sectors of the ... Read the full article
KBW reports satisfactory, albiet unspectacular 6/1 pricing expectations
24th May 2021
Reinsurance executives’ 6/1 reinsurance renewal pricing expectations remain satisfactory but unspectacular, according to a new KBW report. Florida renewals are expected to end up at 5-10%, with bigger increases on loss-impacted accounts. One executive anticipated 20-30% increases for Florida- focused property insurers whose expansion into other Gulf states proved less diversifying than ... Read the full article
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