Reinsurance News
Insurance and reinsurance pricing news
News on pricing in global insurance and reinsurance markets, with a particular focus on renewal rates on line in reinsurance and commercial insurance pricing trends.
Reinsurer returns still insufficient relative to risk: Moody’s
9th September 2020
Despite reinsurance pricing having built much upward momentum over the course of the year, analysts at Moody’s remain adamant that the sector’s returns are still insufficient relative to risk. Speaking at a briefing alongside the release of Moody’s Global Reinsurance Outlook report, Vice President James Eck maintained that “much more rate ... Read the full article
US commercial insurance prices up almost 10% in Q2: WTW
9th September 2020
US commercial insurance prices increased by almost 10% during the second quarter of 2020, according to a new survey by re/insurance broker Willis Towers Watson (WTW). WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) found that rates had increased substantially during Q2, when compared with the same period in 2019. Excess/umbrella and directors’ ... Read the full article
KBW forecasts growing reinsurance losses & stronger rate increases
24th August 2020
Analysts at KBW are forecasting growing reinsurance losses in 2020 and stronger reinsurance rate increases next year, based on loss activity over the year so far. Reinsurers Munich Re and Swiss Re have already estimated that insured catastrophe losses will total $27 billion and $31 billion over the first ... Read the full article
Palomar faces firmest reinsurance market since inception: CEO Armstrong
14th August 2020
The June 1 placement marks the firmest reinsurance market Palomar has faced since its inception, according to Chief Executive Officer (CEO) and Director Mac Armstrong. Speaking alongside the release of Palomar’s Q2 results, Armstrong said the rising cost of reinsurance in the property market should create “several opportunities” within the company’s ... Read the full article
Rate increases to offset rising reinsurance costs, says FedNat
13th August 2020
FedNat CFO Ronald Jordan has said that filed rate increases are expected to largely offset the company’s higher catastrophe reinsurance costs in the second half of 2020. Speaking alongside the release of FedNat’s Q2 results, Jordan explained that the firm would continue to restrict underwriting in its Florida book until rates ... Read the full article
US commercial prices rise during Q2: MarketScout
21st July 2020
The US composite commercial property and casualty rates increased slightly from up 4.5% in the first quarter 2020 to up 4.8% in the second quarter, according to analysis by MarketScout. MarketScout Chief Executive Officer Richard Kerr notes how, while Almost all US insurers are assessing rate increases, surplus lines insurers are ... Read the full article
Premium rates continue upward trend in Q2: IVANS
13th July 2020
Premium renewal rates continued to increase across nearly all major commercial lines of business during the second quarter of 2020, according to the results of the IVAN Index, a division of Applied Systems. Measured year over year, Commercial Auto, Business Owner’s Policy, General Liability, Umbrella, and Commercial Property all showed an ... Read the full article
Capital rush to decelerate reinsurance pricing: analysts
9th July 2020
Analysts at Credit Suisse believe that reinsurance pricing increases are likely to decelerate as the market heads into 2021, partly due to the recent spate of capital raises. The firm maintained that the fragile state of the marketplace should help to prolong elevated pricing levels, but warned that rate increases would ... Read the full article
Analysts forecast 18 months of reinsurance rate increases
9th July 2020
Analysts at investment banking group Jefferies have predicted that the trend of reinsurance price firming should last at least 18 months, and potentially longer. High natural catastrophe claims over the past few years, combined with underlying claims inflation in the US and the impact of low interest rates will likely sustain ... Read the full article
Reinsurer return on equity forecast at 0.6% for 2020 by Fitch
8th July 2020
Analysts at Fitch Ratings have forecast that losses from COVID-19 will severely limit reinsurer’s profitability in 2020, with overall return on equity forecast at just 0.6% for the year. This would be a major downturn compared with the 9.6% return on equity reported by the market last year. Instead, levels would be ... Read the full article
Influx of capacity could halt reinsurance pricing momentum: Fitch
29th June 2020
Analysts at Fitch Ratings have reported that favourable reinsurance pricing trends are set to continue into 2021, but warned that the large influx of underwriting capacity from recent capital raises could halt this momentum. Fitch noted a significantly harder pricing environment at the June renewals, and attributed the dynamic to years ... Read the full article
Hardening market to expand reinsurance margins: Wells Fargo
17th June 2020
With the industry now entering a hard market cycle, analysts at Wells Fargo Securities believe pricing conditions will lead to better margins for reinsurers, as well as higher premium growth, a stronger ROE profile, and higher valuation multiples. Looking at historical examples, analysts noted that reinsurer underlying loss ratios improved by ... Read the full article
Re/insurers face “profound” impact as COVID-19 lifts pricing: AmWINS
16th June 2020
In a report looking at the affects of COVID-19 on the re/insurance industry, analysts at specialty insurer AmWINS have warned that “the loss impact on the market will be profound.” In May, Lloyd’s of London reported that it will pay between $3 billion and $4.3 billion as a result of the ... Read the full article
Outlook positive for reinsurance top-line and pricing: Barclays
12th June 2020
Analysts at Barclays expect reinsurers to enjoy the best overall top-line outlook in the European insurance market, with decent rate momentum and growth in demand also set to benefit the sector. The firm noted that the P&C re/insurance market came into 2020 in a strong position, with an estimated combined capital ... Read the full article
Lancashire sees rate increases of up to 30% at June renewals
11th June 2020
Specialty insurer and reinsurer Lancashire Holdings Limited has reported rate increases of 20%-30% for its Florida property catastrophe portfolio at the June 1 renewals. The company expects the momentum of rising rates to continue in this and other classes of business across its portfolio during the rest of this year and ... Read the full article
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