Reinsurance News
KBW
Reinsurance rate increases to continue through 2021: KBW
22nd May 2020
Analysts at KBW believe that reinsurance rate increases will be sustained at least through to January 2021, as reinsurers contend with higher retrocession costs. The firm released its forecasts for the upcoming June and July renewals following a series of virtual meeting with Bermuda executives from two reinsurance brokers and four ... Read the full article
Florida renewal rate increases of at least 20%: KBW
20th May 2020
After conducting virtual field research in Florida, analysts at Keefe, Bruyette & Woods are expecting reinsurance pricing in the state to increase at least 20%. One CEO reported hearing about 30-50% rate increases in the marketplace, with particularly vulnerable companies given only 24 hours to decide whether to accept 75%-plus rate ... Read the full article
Cat reinsurers broadly optimistic about mid-year renewal pricing: KBW
24th April 2020
Catastrophe reinsurers attending the AIFA 2020 conference remain broadly optimistic about mid-year renewal pricing, with some estimated increases approaching 50% for the Japan-focused 4/1 renewals, according to analysts at Keefe, Bruyette & Woods. In addition, roughly 20% increases are expected for the Florida-focused 6/1 renewals, with the delta reflecting Japan’s significant ... Read the full article
KBW forecasts improvements for some virus-hit lines
22nd April 2020
Analysts at KBW have said that their near-term outlook favours re/insurers focused on lines for which underwriting prospects are improved by the coronavirus (COVID-19) pandemic and global responses to it. In contrast, they added that re/insurers exposed to lines with virus-related loss exposure will probably see initial pressure. For example, KBW expects ... Read the full article
KBW warns re/insurers against complacency on virus BI claims
31st March 2020
Analysts at Keefe, Bruyette & Woods (KBW) have warned re/insurers that some courts are likely to decide that commercial policies will include business interruption (BI) coverage stemming from the coronavirus (COVID-19), even if it is explicitly excluded. Based on its discussions, KBW believes that most P&C insurers consider themselves to have ... Read the full article
Despite the disruption, insurers expect limited BI claims from COVID-19: KBW
19th March 2020
It remains too early to estimate industry-wide business interruption (BI) losses from the COVID-19 outbreak, and while it's expected that some losses will materialise, insurers are expecting these to be limited, according to analysts at KBW. The ongoing COVID-19 outbreak is having a significantly adverse impact on many businesses across numerous ... Read the full article
Aon / WTW combination is possible but unlikely: KBW
28th February 2020
Analysts at Keefe, Bruyette & Woods (KBW) have said that a potential business combination between re/insurance brokers Aon and Willis Towers Watson (WTW) is “unlikely but not impossible.” Speculation about a possible merger deal between the two broking giants was sparked last week after WTW confirmed that it was exploring “strategic ... Read the full article
Late reinsurance renewals signal supply-demand imbalance: KBW
7th February 2020
Analysts at KBW have observed a supply-demand imbalance at the January 1 reinsurance renewals, which they believe will persist throughout 2020, especially for loss-impacted property catastrophe accounts. The firm noted that reinsurance renewals were later than normal this year, including some placements that were not completed by year-end. Pricing trends are considered ... Read the full article
KBW pegs Q4 global catastrophe losses at $19.2bn
17th January 2020
Analysts at KBW have estimated that global catastrophe losses in the fourth quarter of 2019 amounted to $19.2 billion. Losses stemmed mostly from Typhoon Hagibis, US storms, Chilean and Hong Kong riots, and Australian wildfires. KBW is anticipating rising insured loss estimates for the Australian wildfires in particular, as claimants increasingly begin ... Read the full article
Reinsurance rates lower than expected at ‘U-shaped’ Jan renewal: KBW
27th December 2019
Analysts at KBW believe reinsurance rates at the upcoming January renewals will increase to lesser degree than had been anticipated, with overall rate movements set to be described by a ‘U-shaped’ curve. US domestic insurers, for instance, are reporting reinsurance rate changes of flat to up 5%, which is lower than ... Read the full article
Rate increases at 1/1 renewals to vary by loss experience: KBW
20th December 2019
Analysts at Keefe, Bruyette & Woods (KBW) are expecting rate changes at the 2020 property catastrophe reinsurance renewals to vary significantly, based on the loss experience of individual lines. At January 1, KBW is anticipating the largest increases on retrocessional cover, owing to recent large losses and the significant amount of ... Read the full article
Arch predicts industry “pain”, confident in own reserve position
16th December 2019
Bermudian re/insurer Arch Capital Group expects worsening liability loss trends to cause the industry significant pain but is confident in its own reserve position. Arch’s Chief Executive Officer Marc Grandisson and Chief Financial Officer François Morin say the firm’s position reflects its longstanding conservative reserving philosophy and recent years' strong mortgage ... Read the full article
Hagibis insured losses could exceed $9bn-rated Faxai: KBW
14th October 2019
Typhoon Hagibis, which carved a path of destruction along the east coast of Japan over the weekend, could prove to be more costly than last month’s Typhoon Faxai, according to Keefe, Bruyette & Woods analysts. Hagibis made landfall along Japan’s east coast as a category 2 on Saturday evening, carving a ... Read the full article
Lloyd’s performance improvements not yet sufficient, says KBW
20th September 2019
Analysts at Keefe, Bruyette & Woods (KBW) have contended that the Lloyd’s of London results for the first half of 2019 show necessary but insufficient improvements in the performance of the insurance and reinsurance marketplace. Lloyd’s released its H1 results earlier this week, reporting a £2.3 billion profit before tax, ... Read the full article
Hurricane Dorian landfall in Florida could hurt reinsurers the most: KBW
28th August 2019
Analysts at Keefe, Bruyette & Woods (KBW) believe that Tropical Storm Dorian is likely to impact reinsurers more than primary carriers if it strengthens and makes landfall in Florida. Current forecasts suggest that Dorian could develop into a major hurricane, with Category 3 wind speeds of between 111-129mph, before making landfall ... Read the full article
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