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.
Key reinsurance renewals occur at: the 1st of January, which is the biggest renewal of the reinsurance year and has a broader global focus; April 1st when Japanese reinsurance renews; June 1st for Florida reinsurance renewals; and July 1st when more US reinsurance business gets renewed.
Our reinsurance renewals news covers all of these key points in the year and we also provide analysis and insight into what to expect at upcoming renewal seasons as well.
Kin completes $860 million nat cat reinsurance program
25th May 2023
Homeowners insurtech Kin Insurance has announced the successful completion of its reinsurance program for the Kin Interinsurance Network in Florida. The program, covering the period from June 1, 2023, to May 31, 2024, offers extensive coverage of $860 million for natural catastrophes. This reinsurance initiative provides protection up to a one-in-200 year ... Read the full article
Further reinsurance pricing-power increases expected at mid-year FL renewals
24th May 2023
Analysts at BMO Capital Markets anticipate +30-40% reinsurance pricing-power increases at the mid-year Florida renewals, compared to reinsurance pricing of +28-38% at Jan 1. According to BMO's analysts, Terms & Conditions remain "as tight as can be", meaning reinsurers will be "on the hook" for meaningfully less market share of overall ... Read the full article
TWIA finalises reinsurance and risk transfer placement for 2023 wind season
23rd May 2023
The Texas Windstorm Insurance Association (TWIA) has now finalised its reinsurance and risk transfer for the 2023 wind season, with its tower placed to the targeted $4.508 billion after the insurer secured an additional $1.043 billion of traditional reinsurance. As we wrote previously, TWIA was in the market for an ... Read the full article
Florida renewal sees orderly process and price increases, driven by recent reforms: JMP Securities
22nd May 2023
The Florida insurance market is poised to experience a marked contrast during its June 1 renewal, characterised by an early and orderly process, according to JMP Securities. However, the renewal will also bring significant price increases as the market seeks to stabilise and address ongoing challenges, the report noted. Industry experts ... Read the full article
Florida Citizens targets at least $5.5bn of reinsurance for 2023 on $675m budget
17th May 2023
Florida’s Citizens Property Insurance Corporation's Board met yesterday to debate the carrier's reinsurance risk transfer plans, approving a lower-than-expected budget of $675 million, which Chief Financial Officer (CFO), Jennifer Montero, hopes will be enough to secure at least $5.5 billion of risk transfer from both the traditional reinsurance and capital ... Read the full article
It will take time for reinsurers to get comfortable with Florida: United CEO Peed
16th May 2023
As United Insurance Holdings works to finalise its June 1st catastrophe reinsurance renewal, Chief Executive Officer (CEO) Dan Peed has said that the Florida residential cat market remains extremely hard, warning that it will take some time for reinsurance companies to get comfortable with the exposures and challenges. The property and ... Read the full article
June renewal will be challenging regardless of legislative reforms: Stonybrook
16th May 2023
Florida domestic carriers will have a challenging June reinsurance renewal, even with the implementation of the legislative reforms, suggest analysts at Stonybrook Capital. According to the analysts, natural catastrophes and the increased frequency of secondary perils placed pressure on property carriers across the nation in 2022, especially in the coastal regions. Stonybrook ... Read the full article
Everest execs foresee rapid growth in 2023, expect strong mid-year renewals
12th May 2023
Juan Andrade, President and CEO of Everest Re, described the company’s Q1 2023 results as excellent. The company had significant top-line growth. It saw an underwriting profit, operating income and net income that are all up meaningfully in the quarter, while generating a 17% operating ROE. The company has seen success ... Read the full article
No-win situation for Florida insurers at renewal: ALIRT
10th May 2023
Analysts at insurance research firm ALIRT have warned that insurers in the Florida market face a “no-win situation” when they come to renew their reinsurance this year. The firm notes that rates at the upcoming June reinsurance renewals are estimated to potentially rise by up to 50% and could result in ... Read the full article
Heritage to continue limiting new business at renewal
10th May 2023
Heritage will continue to limit the amount of new business it writes as it works to finalise its 2023 catastrophe reinsurance program, Chief Executive Officer (CEO) Ernie Garateix has reported. Garateix provided some commentary on his company’s upcoming renewals as part of a recent Q1 earnings call, while also breaking down ... Read the full article
“Q1 a demonstration of the quality of our book of business,” says Palomar CEO
9th May 2023
"The first quarter was a demonstration of the quality of our book of business and our ability to navigate the choppy waters of this hard reinsurance market," says Palomar Holdings CEO Mac Armstrong. Armstrong states that Palomar successfully placed $188 million of incremental excess of loss reinsurance limit during Q1 to ... Read the full article
1.4 methodical & measured as pricing momentum continued: Swiss Re
9th May 2023
"While 1.1 was quite uncertain, 1.4 was much more methodical, market and economic conditions and dynamics didn’t change dramatically, so the process was much more measured," suggests Gianfranco Lot, Chief Underwriting Officer P&C Reinsurance at Swiss Re. According to Lot, expectations were better managed for 1.4, as the 1.1 renewal enabled ... Read the full article
Berkshire Hathaway’s property cat exposure up 50% following “attractive” April 1
9th May 2023
Ajit Jain, Vice Chairman of Insurance Operations at Berkshire Hathaway, has suggested that the firm's property cat exposure is almost 50% more than it was half a year ago, adding, "We have written as much as our capacity will allow us to write," amid "attractive" April 1 prices. Jain said, "The ... Read the full article
Validus Re premiums up 40%. Significant rate increases expected in June: AIG CEO Zaffino
5th May 2023
Validus Re, the Bermuda headquartered global reinsurance arm of American International Group (AIG), grew its gross premiums written by an impressive 40% in the first-quarter of 2023, CEO Peter Zaffino explained today. Speaking during the AIG earnings call today, AIG CEO Zaffino explained that the reinsurance business has been growing strongly, ... Read the full article
Top of Allstate’s catastrophe reinsurance tower reduces slightly as cost of program increases
4th May 2023
U.S. primary insurer Allstate has completed the placement of its 2023-2024 Nationwide Excess Catastrophe Reinsurance Program, revealing that the top of the tower has come down slightly from the Q4 2022 update, while the cost of the program has increased year-on-year. At $6.92 billion, the top-end of the tower has come ... Read the full article
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