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.

United Insurance extends quota share, renews catastrophe reinsurance

7th January 2019

United Insurance Holdings (United) has announced the successful extension of its current 20% catastrophe quota share reinsurance agreement until June 2019, whilst also renewing its catastrophe aggregate and other reinsurance agreements. Effective 31 December 2018, through its United Property and Casualty Insurance Company (UPC) subsidiary, United extended its 20% quota share ... Read the full article

Retro market disruptions may impact future renewals: Willis Re

7th January 2019

Disruptions and trapped collateral in the retrocession market may have an impact on first-tier reinsurance property catastrophe pricing levels over the upcoming 2019 renewals, according to broker Willis Re. The analysis came as part of the firm's latest 1st View report, which found that reinsurance rates at the 1 January ... Read the full article

Pricing broadly stable across U.S casualty renewals, finds Willis Re

3rd January 2019

The latest 1st View report from Willis Re has found that U.S casualty reinsurance pricing trends were mixed at the 1 January 2019 renewals, with pockets of rate increases and decreases across a broadly stable market. The findings came as part of the broker's wider market analysis, which found that Read the full article

IAG expands catastrophe reinsurance to $9 billion of coverage

3rd January 2019

Australian primary insurer Insurance Australia Group Limited (IAG) has successfully renewed its catastrophe reinsurance protection at an expanded size of $9 billion, up from $8 billion in the prior year. The 12.5% increases in catastrophe reinsurance limit has been secured in a similar structure to 2018, to provide IAG with ... Read the full article

January renewals highlight reinsurance “pricing gap”: Willis Re

2nd January 2019

The January 2019 reinsurance renewals have highlighted a "pricing gap" between cedants with peak peril exposure or poor loss records and other accounts, according to a new report from broker Willis Re. The company earlier told the Financial Times that reinsurance rate increases did not materialise at the 1 January renewals, ... Read the full article

Reinsurance renewals defy expectations of post-loss firming: JLT Re

2nd January 2019

The January reinsurance renewals "broadly defied early expectations of post-loss firming for the second consecutive year," according to broker JLT Re. Reinsurers' desire and ability to underwrite risks remained healthy overall, the broker said this morning, and as a result pricing was seen as broadly stable across reinsurance markets at the ... Read the full article

Reinsurance rates flat to slightly down at January 2019 renewal

2nd January 2019

Reinsurance rates at the key January renewal season are largely seen to have been flat or a little down, according to the first report on the key contract signings. Broker Willis Re told the FT that hoped for reinsurance rate increases did not appear at the renewal, resulting in an overall ... Read the full article

KBW moderately optimistic about 2019 reinsurance pricing

31st December 2018

Analysts at Keefe, Bruyette & Woods remain moderately optimistic about 2019 reinsurance pricing following meetings with numerous underwriters and brokers. Virtually everyone KBW met expected steadily rising reinsurance pricing over the course of 2019, reflecting declining supply and rising demand, which could extend into other lines, particularly the retro-dependent Lloyd’s market. Participants ... Read the full article

Ongoing competition to impact profits in London non-life sector: Fitch

27th December 2018

The profitability of companies in the London, UK non-life re/insurance sector will continue to come under pressure throughout 2019 as intense competition erodes margins, according to Fitch Ratings. Fitch said its outlook for the sector would remain negative in light of a number of ongoing challenges, including regulatory scrutiny, high expense ... Read the full article

Hardening rates expected as industry losses exceed 20 year average: Barclays

24th December 2018

Reinsurers look set to shoulder another quarter of “extraordinary” natural catastrophe losses following increases in industry estimates for the California wildfires and hurricane Michael, leading to hardening rates in 2019, according to analysts at Barclays. They expect a 1-3% increase for large players and believe this year’s industry losses may reach ... Read the full article

International Group of P&I Clubs reduces reinsurance costs in 2019 renewal

19th December 2018

The International Group of P&I Clubs (IGP&I), a provider of protection and indemnity (P&I) insurance to the global shipping industry, has renewed its reinsurance program for the 2019/20 year with rate reductions across all of its vessel categories. The $3.1 billion reinsurance program included a number of changes to its structure ... Read the full article

Pricing set to improve across UK specialty classes in 2019, say analysts

19th December 2018

Consecutive periods of above-average large losses are set to cause a positive reaction in pricing across a range of UK specialty classes in 2019, according to analysts at J.P. Morgan. The firm noted that 2018 saw a higher incidence of man-made losses, putting classes like Marine under additional pressure, while pricing ... Read the full article

KBW anticipating modest rate improvements at 1/1 renewals

18th December 2018

Analysts at Keefe, Bruyette & Woods (KBW) are expecting low single-digit increases in reinsurance pricing at the 1 January 2019 renewals due to the significant catastrophe losses experienced this year and some constraint on the supply of alternative capital. KBW acknowledged that the abundance of third-party capital in the property catastrophe ... Read the full article

European reinsurance pricing to continue improving through 2019: Barclays

18th December 2018

Reinsurance prices in the European market should continue to gradually improve throughout 2019 as demand goes up and capacity becomes more constrained, according to analysts at multinational investment bank Barclays. Barclays estimates that the reinsurance industry is set to incur around $70 billion in large loss claims this year, which is ... Read the full article

Alternative capital growth to further restrict pricing cycles: Swiss Re

14th December 2018

Alternative capital has matured into an integral player in the property catastrophe reinsurance and retrocession markets, but its continued growth is likely to further curb the volatility of the overall underwriting cycles, according to a report from the Swiss Re Institute. Over the last decade, the alternative capital market has become ... Read the full article