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.

TWIA increases traditional reinsurance coverage to $936m at renewal

6th June 2022

The Texas Windstorm Insurance Association (TWIA) has released the details of its full catastrophe reinsurance program for the 2022 hurricane season, which consists of a $2.036 billion program tower, including $936 million of traditional reinsurance and $1.1 billion of coverage from catastrophe bonds. While the level of protection from its catastrophe ... Read the full article

Universal renews reinsurance at higher cost with more capacity

1st June 2022

Florida headquartered and expansive primary insurance company, Universal Insurance Holdings, has announced that it has successfully renewed its reinsurance coverage at a “modestly” higher cost. Changes to the program include more open market catastrophe capacity across all treaties and multiple events, as well as a reduction to the top end of ... Read the full article

Palomar successfully completes June reinsurance renewal

1st June 2022

Palomar has successfully completed its 1 June reinsurance renewal. The firm said that it had procured approximately $430m of incremental limit for earthquakes and $200m of incremental windstorm limit. Its reinsurance coverage now exhausts at $2.08bn for earthquake events and $900m for hurricane events. Palomar also said that it had maintained ... Read the full article

‘Well over $10bn of unplaced limit’ at June 1, further downgrades expected: Stonybrook

31st May 2022

Stonybrook Capital has reported that the current shortfall of limit placed by domestic Florida carriers for the renewal of June 1st, 2022, reinsurance programs is well over $10 billion, leading the firm to expect further downgrades in the opening weeks of next month. With a plethora of issues facing the Florida ... Read the full article

42% expect to buy the same amount of reinsurance at mid-year renewals: Survey

30th May 2022

We recently published the results of our latest global reinsurance market survey, in which we polled market participants on the state of the market as the mid-year renewal season fast-approaches. The survey, undertaken in collaboration with insurance-linked securities (ILS) focused sister-site, Artemis, includes responses from hundreds ... Read the full article

77% expect some carriers will fail to obtain sufficient reinsurance at June 1: Survey

26th May 2022

Data from our mid-year 2022 reinsurance renewals survey reveals that carriers are expected to adopt various strategies as they struggle to secure the desired level of reinsurance at what's been described as a very late June 1st, 2022, renewals. With the June reinsurance renewals having a heavy ... Read the full article

Reinsurance rates to accelerate, but buyers will struggle to fill towers: Survey

25th May 2022

Market participants are confident that reinsurance rate increases will accelerate further at the mid-year 2022 renewals, while buyers of protection will find it challenging to procure the desired level of coverage, according to data from the latest Reinsurance News market survey. The survey, undertaken in collaboration with our insurance-linked ... Read the full article

Many programs risk not getting filled at ‘very late’ June reinsurance renewals: KBW

24th May 2022

As issues continue to plague Florida's property insurance market, there's a risk that many programs will not be fully placed at what appears to be a very late June 1st, 2022, reinsurance renewals, according to analysts at KBW. After meeting with re/insurance industry executives on day one of its Bermuda tour, ... Read the full article

Firm order terms for TWIA’s 2022 reinsurance renewal suggests ROL of 6.75%

18th May 2022

The Texas Windstorm Insurance Association (TWIA) looks set to pay more for its larger 2022 traditional reinsurance program, with firm-order-terms (FOT) for the renewal pointing to a rate-on-line (ROL) of 6.75%, according to its broker Gallagher Re. Yesterday, the board of the Texas insurer of last resort heard from representatives of ... Read the full article

HCI to wait until after Florida special session to finalise reinsurance: CEO Patel

11th May 2022

Florida-based HCI Group's founder and Chief Executive Officer (CEO), Paresh Patel, revealed recently that the company will wait until after the special session in late May to complete is reinsurance placement. Earlier this week, Florida's governor Ron DeSantis called for a special session to consider legislation to improve the prospects of ... Read the full article

RenRe ‘not that interested in Florida’, structural issues a big concern: CEO O’Donnell

6th May 2022

Ahead of the mid-year renewals, Bermuda-based RenaissanceRe is less interested in the Florida market than in the past, with the company's Chief Executive Officer (CEO), Kevin O'Donnell, explaining that the outcome in June is "of diminishing consequence to us." Plagued by structural and legal issues, the Florida domestic homeowners' market is ... Read the full article

Allstate raises catastrophe reinsurance coverage by $850m

5th May 2022

US primary insurer Allstate has expanded its per-occurrence Nationwide Excess Catastrophe Reinsurance programme for 2022-2023 to provide coverage up to $6.614 billion of losses, less a $500 million retention. In Q1 2022, Allstate completed the renewal of some of its catastrophe reinsurance placements for 2022-2023, specifically its Nationwide Excess Catastrophe Reinsurance ... Read the full article

Hard market to be extended by Ukraine, inflation & supply chain disruption

2nd May 2022

There's no prospects of a return to a softening cycle in global commercial insurance prices while the current global volatility and its inflationary effect continues, the comments of a range of industry personalities who spoke with the Financial Times imply. Interviewed by the FT recently, industry leaders seem to agree that ... Read the full article

FedNat has doubt it can continue amid downgrade and underwriting losses

26th April 2022

Florida headquartered primary insurer FedNat has cast doubt over its ability to continue as a going concern in light of its recent rating downgrade by Demotech, while the firm expects further underwriting losses in Q1 2022 on the back of new catastrophe weather events. Almost a decade ago, FedNat embarked on ... Read the full article

Travelers erodes almost 9% of aggregate reinsurance retention

20th April 2022

US primary insurer Travelers reported that it’s eaten through almost 9% of its catastrophe aggregate reinsurance retention in the first-quarter of 2022, as the firm accumulated $175 million of qualifying losses. Back at the January reinsurance renewals, Travelers shrunk its aggregate coverage, with tighter terms due to market conditions and ... Read the full article