Reinsurance News

Reinsurance renewals news

Reinsurance renewals are the key points in the year when the majority of reinsurance contract renewal negotiations occur and are completed.

The reinsurance renewal seasons provide insight into reinsurance pricing, contract terms, reinsurance market positioning and the direction of future trends in the market.

Lemonade buys catastrophe excess-of-loss reinsurance at July renewal

15th August 2022

Growing insurtech Lemonade has secured catastrophe excess-of-loss reinsurance to protect its business at the July 1 2022 renewals. The insurtech company continues to utilise reinsurance more for capital efficiency reasons than for risk management, but the catastrophe excess-of-loss treaty is clearly designed to moderate the impacts of major US catastrophe events ... Read the full article

Lemonade reduces quota share reinsurance cession rate again

12th August 2022

Lemonade has said it is to cede 55% of its gross premiums to the quota sharing reinsurance program it entered into two years ago, down from the original 75%, and the 70% it had reduced the cession rate to last year. The announcement was made in the firm’s letter to shareholders, ... Read the full article

Everest Re expects further market improvements at 1/1

3rd August 2022

Juan Andrade, President, CEO and Director of Bermuda-based reinsurer Everest Re, has said that he expects further improvements in the reinsurance market going into the January 2023 renewal period. Speaking on an earnings call alongside the release of Everest Re’s Q2 results, Andrade addressed the issue of market conditions through the ... Read the full article

US property cat reinsurance rates up by 15% in 2022: Guy Carpenter

25th July 2022

So far this year, property catastrophe reinsurance rates-on-line in the U.S. have risen by almost 15%, representing the largest increase in the Guy Carpenter U.S. Property Catastrophe Rate on Line Index since 2006. Reinsurance broker Guy Carpenter's index is a proprietary index of U.S. property catastrophe reinsurance rate-on-line movements, so ... Read the full article

H1 2022 “most challenging property market for years” – Klisura, Guy Carpenter

25th July 2022

The first half of 2022 was “the most challenging property market we have seen in a number of years”, according to Dean Klisura, President and Chief Executive Officer of Guy Carpenter. Speaking during Marsh McLennan’s Q2 2022 earnings call, he said that US property catastrophe rates have ... Read the full article

Catastrophe losses erode almost half of Travelers’ aggregate reinsurance retention

22nd July 2022

US primary insurer Travelers accumulated $935 million of qualifying losses towards the aggregate retention of its $2 billion property catastrophe reinsurance treaty during H1 2022, according to the company's Chief Financial Officer (CFO), Dan Frey. Yesterday, Travelers announced a decline in net income for the second-quarter on the back of ... Read the full article

Travelers upsizes northeast catastrophe reinsurance by $100m at July renewal

21st July 2022

US primary insurance carrier Travelers has grown the size of its main Northeast Property Catastrophe Excess-of-Loss Reinsurance coverage by $100 million at the July 1st, 2022, reinsurance renewals, as the firm saw price increases aligned with those seen on its inwards book. For 2022, the Northeast Property Catastrophe reinsurance agreement sees ... Read the full article

Aeolus launched Florida-focused reinsurance facility at June 1 renewals

12th July 2022

Bermuda domiciled reinsurance and insurance-linked securities (ILS) focused investment fund manager, Aeolus Capital Management Ltd., launched a largely Florida-focused reinsurance facility at the June 1st, 2022, renewals, called Corbel, according to Artemis' sources. Our ILS-focused sister site, Artemis, reported yesterday that Corbel is mostly focused on providing reinsurance capacity to cedents ... Read the full article

“Demand for catastrophe bonds outpacing industry’s ability to meet them” – Aon

8th July 2022

Aon’s latest Reinsurance Market Dynamics: June and July Reinsurance Renewals says that the current demand for catastrophe bonds is outpacing the ability of the industry to supply them. According to the report, the current situation has arisen because insurers and reinsurers have turned increasingly to alternative capital markets to supplement traditional ... Read the full article

Assurant finalises 2022 property cat reinsurance program

7th July 2022

Assurant has finalised its 2022 property catastrophe reinsurance program, successfully placing $1.16bn in loss coverage within its main U.S. program. At the same time, the company has maintained an $80m retention per event, limiting its financial exposure against severe weather and other hazards. In addition, the company said it was able to ... Read the full article

Gallagher Re finds pricing in US Nationwide market up by 40% in spots

7th July 2022

Gallagher Re’s latest mid-year renewals report has found that property rate movements in the US has increased by up to 40%. Pricing in some cases in the Florida market have even increased by up to 50%. In the report, Gallagher Re stated that risk excess and catastrophe capacity started to become ... Read the full article

Stand-alone protection for cyber ‘essentially unobtainable’ at economical terms: Gallagher Re

6th July 2022

According to Gallagher Re’s mid-year renewals report, stand-alone risk protection for cyber is essentially unobtainable at economical terms, however some cyber risk protection is still available via composite casualty treaties. The report also highlights how there is a continued appetite on the proportional side for supporting existing programmes as both cyber ... Read the full article

CEA’s risk transfer program declines to roughly $9.3bn

6th July 2022

The California Earthquake Authority (CEA) has seen a roughly $600 million dip in its total capacity from the end of 2021, as the entity's risk transfer program declines in size to just shy of $9.3 billion amid a firming reinsurance market. Total capacity, as of the end of May 2022, stood ... Read the full article

IAG finalises aggregate reinsurance cover for FY 2023

6th July 2022

Australian insurer IAG has said that it has finalised its aggregate reinsurance cover the financial year ending 30 June 2023. In a statement, the firm said that its FY23 cover provides protection of $350m in excess of $500m, the latter figure up from $400m from last year. Like last year, individual ... Read the full article

$5bn+ of additional reinsurance limit sought by carriers at mid-year renewals: Aon

5th July 2022

Buyers sought an estimated additional $5 billion+ in limit at the mid-year 2022 reinsurance renewals, driven mostly by elevated inflation expectations, and also heightened secondary peril losses, reports Aon. "Faced with inflation-driven exposure growth, as well as increased frequency of secondary perils, many insurers entered the renewals looking to purchase higher ... Read the full article