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.
Travelers renews aggregate catastrophe reinsurance under tighter terms
23rd January 2020
Travelers has successfully renewed some of its catastrophe reinsurance treaties at the January 1st, 2020 renewals, which shows that the firm is to retain a much higher share of its losses this year under changes made to its underlying property aggregate catastrophe excess-of-loss reinsurance treaty. This time last year, the ... Read the full article
Korean Re Switzerland grows portfolio by over 50% at first renewal
23rd January 2020
Korean Re Switzerland, the Zurich-based subsidiary of Asian reinsurer Korean Re, has announced the successful completion of its first reinsurance renewal on the 1st of January, 2020. The Seoul-based reinsurer established its European subsidiary as part of a push to expand in the region. The new entity was licensed to ... Read the full article
Casualty/specialty a more compelling pricing story at 1/1, says S&P
21st January 2020
Analysts at S&P Global Ratings have said that sentiment was both stronger and more broad-based in casualty/specialty lines than in the property arena at the January 1st reinsurance renewals. In U.S. non-proportional business, rate increases were substantial and ceding commissions on this business were down by as much as 3% in ... Read the full article
Reinsurance rate adequacy still needs to improve: Peel Hunt
21st January 2020
Analysts at Peel Hunt have argued that reinsurance rate adequacy still needs to improve, despite some positive momentum at the recent January renewals. The firm said that adequacy has not yet been achieved despite sharp rate increases on loss affected lines, and questioned whether pricing over the remainder of the year ... Read the full article
Rate increase story to improve through 2020, says JMP Securities
20th January 2020
The relatively "unexciting" January 1st renewal season is a reflection of the mix of accounts and contracts up for renewal, and, as the reinsurance market moves through 2020, the rate increase story will improve, according to analysts at JMP Securities. Overall, analysts highlight a relatively flat property catastrophe reinsurance market at ... Read the full article
Casualty market pressures see capacity tighten at 1/1: Guy Carpenter
17th January 2020
Casualty reinsurance capacity tightened at the recent January renewals against a backdrop of heightened litigation costs, more generous jury verdicts, and shifting attitudes in the US, according to Guy Carpenter. Analysts noted that many reinsurers were forced to adopt more cautious underwriting positions at 1/1 due to higher loss cost trends, ... Read the full article
Reinsurance pricing momentum to be carried forward in 2020: S&P
16th January 2020
Analysts at S&P Global Ratings believe that the positive reinsurance pricing momentum seen at the recent January renewals is likely to be carried forward into the other upcoming renewals in 2020. According to S&P data, global average rate increases were in the low-to-mid single digits in aggregate at the 1/1 reinsurance ... Read the full article
United grows all other perils catastrophe reinsurance at renewal
10th January 2020
United Insurance Holdings Corp. (UPC Insurance) has announced the successful renewal of its reinsurance arrangements for 2020, through its wholly owned insurance subsidiaries American Coastal Insurance Company, United Property and Casualty Insurance Company, Family Security Insurance Company, and Interboro Insurance Company. Specifically, UPC Insurance has renewed its aggregate excess of loss ... Read the full article
A disciplined renewals despite market challenges, says Aon
10th January 2020
Global insurance and reinsurance broker Aon has said that in spite of new market dynamics, programs renewed in an orderly fashion at the January 2020 reinsurance renewals season. Aon's January 2020 Reinsurance Market Outlook report highlights an orderly renewals season in most regions, adding that this occurred despite the impacts of ... Read the full article
Reserve deterioration a potential inflection point in 2020: GC’s Whitmore
8th January 2020
Ongoing challenges associated with reserve deterioration in the re/insurance industry represent a potential inflection point that demands close attention moving into 2020, according to Charles Whitmore, managing director at Guy Carpenter. Speaking at a lecture in Lloyd’s Old Library building, Whitmore described the issue as something spreading - accelerating, even - ... Read the full article
Goldman Sachs still cautious on P&C heading into 2020
8th January 2020
Analysts at Goldman Sachs remain cautious in their outlook for commercial property and casualty (P&C) re/insurance in 2020, as potential positive rate momentum is balanced against broadening loss trend deterioration. That said, the firm believes many reinsurers are positioned to grow their top lines this year, supported by pockets of rate ... Read the full article
Aviation reinsurers achieve major price corrections at 1/1: Willis Re
8th January 2020
Reinsurers broadly achieved major price corrections and payback at the global aviation renewals in January, according to broker Willis Re, despite an abundance of available capacity. Analysts reported that aviation rates were up by 15% on average for clean renewals, and by up to 70% for loss affected renewals. Underlying premium income ... Read the full article
Capacity retraction & rate increases define marine renewals: Marsh JLT Specialty
7th January 2020
The key themes for the marine re/insurance market at the January 2020 renewals were a retraction of capacity, rate increases, job losses, and a keen approach to risk selection, according to Marsh JLT Specialty. Analysts noted that a major feature of the market last year was the speed at which a ... Read the full article
Reinsurer appetite remained, ILS role limited in Europe at Jan 1st: Willis Re
7th January 2020
Reinsurer appetite remained strong in certain European markets at the January 1st, 2020 renewals season, while the participation of insurance-linked securities (ILS) funds was limited, according to Willis Re, the reinsurance broking arm of Willis Towers Watson (WTW). Willis Re's commentary on the Jan 1st 2020 European reinsurance renewals highlights some ... Read the full article
Non-marine retro renewals hit by ILS capacity squeeze: Willis Re
6th January 2020
Capacity constraints from the insurance-linked securities (ILS) market resulted in a challenging renewal for the non-marine retrocessional market, according to Willis Re, the reinsurance arm of global insurance brokerage Willis Towers Watson. Analysts noted that ILS capacity has been a driving force of retro capacity in recent years, but is now ... Read the full article