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.
Commercial carriers poised to benefit from continued rate improvements: JP Morgan
21st August 2019
Broad industry pricing improvements are expected to provide a tailwind to commercial carriers’ top-line growth and earnings, according to JP Morgan analyst Keith Cornelius. This is likely to be supported by year-on-year improvements in bet investment income, as well as a manageable quarter in terms of catastrophe activity. Cornelius believes that small ... Read the full article
FHCF renews $920m program. Swiss Re now largest market, as RenRe downsizes
21st August 2019
The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program for 2019 at a slightly smaller size of $920 million, but with flat risk-adjusted pricing. Swiss Re is now the largest participating market in the FHCF's reinsurance program, as the reinsurer took the same $185 million slice as the prior ... Read the full article
Inadequate pricing & market disruption to push rate increases into 2020: Fitch
20th August 2019
Reinsurance rate increases are expected to continue into the 2020 renewals due to ongoing disruption in the market and inadequate pricing levels, according to Fitch Ratings. Fitch noted that reinsurance pricing turned decidedly positive at the mid-year 2019 renewals, following disappointing flat and generally stable rates at January. Momentum has largely been ... Read the full article
Travelers renews cat reinsurance at July 1, but eats into aggregate retention
23rd July 2019
U.S. primary insurer Travelers has disclosed the terms of the catastrophe reinsurance treaties it purchased at the recent July 1, 2019 renewals. Management also revealed on an earnings conference call today that the company has incurred just under $800 million towards the attachment point of its new catastrophe reinsurance treaty. This represents ... Read the full article
Reinsurance pricing thought to have increased 2-3% across lines at July renewals: Barclays
17th July 2019
Analysts at Barclays have reported evidence of reinsurance price hardening across geographies and lines of business at the recent July renewals, with rate increases likely to have averaged around 2-3%. The strongest pricing response is expected in loss-affected areas of the U.S and Asia, as well as in lines that saw ... Read the full article
Active but manageable cat load to hit P&C earnings in Q2: Analysts
12th July 2019
On the back of an active period for catastrophes but still manageable underwriting losses, improved investment returns, and the improving rate environment, analysts at J.P. Morgan are expecting property and casualty (P&C) re/insurers to report mixed earnings for the second-quarter of 2019. Global insurers and reinsurers are soon to announce their ... Read the full article
European reinsurers’ profitability hinges on adequate renewals pricing, says EIOPA
2nd July 2019
With competitive pressure still high, continued profitability in the European reinsurance sector will likely hinge on adequacy of risk pricing at the 2019 mid-year renewals. This is according to analysts from the European Insurance and Occupational Pension Authority (EIOPA), who assessed the financial stability of the industry in a new report. The ... Read the full article
Fednat grows catastrophe reinsurance program at July renewals
2nd July 2019
Florida-based FedNat Holding Company has announced the renewal of its catastrophe reinsurance program for 2019-2020, which includes a slight increase to its aggregate limit. The aggregate reinsurance limit was increased from $1.79 billion to $1.84 billion at the July 1 renewals, FedNat reported. At the same time, the aggregate private market limit ... Read the full article
Reinsurers see “tangible pricing momentum” at July renewals: Willis Re
1st July 2019
After a hesitant start to the year, reinsurers have experienced “tangible pricing momentum" at the mid-year renewals, according to Willis Re, although improvements are falling short of those seen in the primary markets. The broker’s 1st View report observed reinsurance pricing increases across most territories at the July renewals, with some ... Read the full article
Munich Re and Validus lead traditional markets in Citizens’ 2019 renewal
27th June 2019
Details around the successful completion of Citizens Property Insurance Corporation's $1.45 billion 2019 reinsurance renewal reveals that Munich Reinsurance America, Validus Reinsurance, Nephila Capital, and D.E. Shaw Re led the placement. After originally targeting a $1.6 billion reinsurance programme for the 2019 hurricane season, Citizens settled on a slightly smaller reinsurance ... Read the full article
July renewals to offer muted pricing increases for European reinsurers: Deutsche Bank
26th June 2019
European reinsurers can expect to see only muted pricing increases at the July 2019 renewals, which will likely offer a similar experience to renewals earlier in the year, according to analysts at Deutsche Bank. Nevertheless, the firm continues to see some positive signs in the market, such as pricing momentum from ... Read the full article
Positive momentum suggests a shift towards more desired risk-adjusted pricing: S&P
25th June 2019
S&P Global Ratings maintains that it would not characterise the reinsurance market as a hard one, but more of a firm one as improved rate momentum in both April and June signals a shift towards more desired risk-adjusted pricing. 2019 renewals have been fairly promising, with reinsurance rate movement throughout the ... Read the full article
Oxbridge Re successfully renews reinsurance contracts at June 1
25th June 2019
Cayman Islands based reinsurer Oxbridge Re has reported that it successfully placed its reinsurance contracts for the treaty year June 1, 2019 to May 31, 2020. Oxbridge Re Holdings Limited, a provider of reinsurance to property and casualty the U.S Gulf Coast, renewed the contracts via its wholly-owned subsidiary, Oxbridge Reinsurance ... Read the full article
Analysts highlight uncertainty around FedNat’s Maison deal & off-cycle renewal
19th June 2019
Analysts at JMP remain confident in the prospects of FedNat Holding Company, but have said that some uncertainty exists around the company's "slightly off-cycle" reinsurance renewal and the potential delay of its acquisition of Maison Insurance, the homeowners insurance operations of 1347 Property Insurance Holdings. JMP met with FedNat management ... Read the full article
Rate rises now largely factored into reinsurance shares, say analysts
18th June 2019
Analysts at Peel Hunt believe rate increases are already largely factored into reinsurance share prices, and suggest market participants trim their sector exposures in light of the U.S. hurricane season. In 2019, a flattish January European renewals season was followed by modest price firming in April in Japan, on the back ... Read the full article