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.
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
Inflation a hot topic of discussion for casualty reinsurance placements: Gallagher Re
5th July 2022
According to Gallagher Re’s mid-year renewals report, inflation remained an ever-increasing topic for discussion for casualty reinsurance placements. The report notes that reinsurers were seeking client by client explanations in relation to the management of this risk in reinsurance placements Moreover, with an increased focus on pricing adequacy from reinsurers, the recent ... Read the full article
Suncorp makes reinsurance adjustments amid “material hardening”
4th July 2022
Australian primary insurer Suncorp has made some adjustments to its FY23 reinsurance placement to reflect "the material hardening" of the reinsurance market after heightened natural catastrophe activity. In line with the firm's FY22 July reinsurance renewal, Suncorp has maintained the overall maximum retention at $250 million. However, the upper limit of the ... Read the full article
Peak Re reports $2,145mn GWP for 2021
4th July 2022
Peak Reinsurance Company Limited – the Hong Kong-based global reinsurer, has reported a 9% increase in gross written premiums (GWP) in 2021, as it rises to $2,145 million, compared to $1,966 million from 2020. Net profit for the year was $73.2 million, compared to $87.1 million in FY2020. At the same time, ... Read the full article
Gallagher Re finds pricing in Florida market up by 50% in spots
1st July 2022
Gallagher Re’s latest mid-year renewals report has found that pricing in some cases in the Florida market has increased by up to 50%. The report found that reinsurers had continued in their efforts to de-risk portfolios and manage net PMLs. It also found that some had existed the Florida market completely. ... Read the full article
Collateralised reinsurers dominate Florida Citizens renewal, again
1st July 2022
Providers of collateralised reinsurance, notably insurance-linked securities (ILS) market players, have once again taken the largest slice of Florida Citizens Property Insurance Corporation’s reinsurance program. For 2022, Florida Citizens was looking to secure anywhere up to $3.64 billion of risk transfer and reinsurance from across the traditional reinsurance and catastrophe bond ... Read the full article
Economic pressures drive widespread rate increases at 1/7: Gallagher Re’s Vickers
1st July 2022
The pressures of inflation and rising interest rates caused reinsurers to remain cautious at the July renewals, which resulted in much less available capacity for buyers and higher prices across the board. This is according to James Vickers, Chairman International, Reinsurance, at Gallagher Re, who spoke to Reinsurance News about July ... Read the full article
Sellers market persists as attachment levels & costs rise at July renewals: Gallagher Re
1st July 2022
Almost all buyers of protection were able to secure their reinsurance coverage at a July 1st, 2022, renewals shaped by economic factors which helped to sustain market hardening, according to Gallagher Re's 1st View report. After a late and tough June 1st reinsurance renewals, all eyes turned to the later mid-year ... Read the full article
Mid-year renewals a ‘near-perfect storm’ for buyers, ‘true hard’ property market to come: Aon
30th June 2022
Alongside a stable casualty reinsurance market, buyers experienced the most challenging specialty renewals in a generation and also capacity constraints in the property space, as reinsurer appetite for catastrophe risk fell materially at the mid-year renewals, reports insurance and reinsurance broker Aon. For buyers of protection, Aon describes a "near-perfect storm" ... Read the full article
United (UPC) shrinks cat reinsurance limit at renewal
20th June 2022
Property and casualty insurance holding company United (UPC Insurance) has disclosed details of its catastrophe reinsurance program for 2022/23, which includes a significant decrease in the occurrence-based limit for its aggregate cover. UPC purchased $2.524 billion of occurrence-based limit in the aggregate for its core cat program, representing a decrease of ... Read the full article
Allstate lifts Florida reinsurance coverage by ~$600m at renewals
17th June 2022
After adding some $850 million of coverage to its Nationwide Excess Catastrophe Reinsurance program in the first-quarter of 2022, US primary insurer Allstate has secured almost $600 million of additional protection for its Florida Excess Catastrophe Reinsurance program for 2022-2023. In early May, Allstate provided an update on its reinsurance ... Read the full article
HCI grows TypTap reinsurance program at renewal
17th June 2022
Florida-based insurtech HCI Group has laid out details of the reinsurance programs it secured for its insurance subsidiaries at the June renewals this year, which include significantly expanded coverage for TypTap Insurance Company (TypTap). The 2022-2023 TypTap reinsurance program provides coverage up to $637.3 million for catastrophic losses in a single ... Read the full article
Florida Citizens set to go through hurricane season under-reinsured
10th June 2022
Florida’s Citizens Property Insurance Corporation is looking set to go through the 2022 hurricane season with less reinsurance protection in place than it would have liked, as sources report that only 36% of its risk transfer program is filled currently. The state property insurer of last resort has only managed to ... Read the full article