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.

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

US commercial insurance prices up “significantly” in Q1 2020: WTW

9th June 2020

Insurance and reinsurance broker Willis Towers Watson (WTW) has reported that U.S. commercial insurance prices "increased significantly" in the first-quarter of 2020 when compared with the same period in 2019. Continuing the momentum witnessed in the final quarter of last year, the aggregate price change reported by U.S. carriers exceeded 6% ... Read the full article

Premium renewal rates see downward turn in May: IVANS

5th June 2020

Month over month, premium renewal rates decreased across all major commercial lines, according to the May results of the IVAN Index, a division of Applied Systems. However, measured year over year, all lines of business saw an increase in average premium renewal rate. This is with the exception of Workers’ Compensation, which ... Read the full article

P&C rates up 9.6% amid pandemic: CIAB

29th May 2020

A new survey from the Council of Insurance Agents & Brokers (CIAB) has found that property and casualty (P&C) premium prices increased by an average of 9.6% in Q1 2020, as the COVID-19 pandemic puts further strain on the market. The figure compares to an average increase of 7.5% in Q4 ... Read the full article