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.
A.M. Best holds negative outlook on global reinsurance market for 2018
19th December 2017
Despite the impacts of third-quarter 2017 catastrophe events expected to improve reinsurance market conditions, uncertainty surrounding the level of price increases and how sustainable any market improvement might be has led A.M. Best to maintain its negative outlook for the sector for 2018. Heading into the January 1st, 2018 renewals season ... Read the full article
Citizens’ preparing for hardening reinsurance market in 2018
18th December 2017
Citizens Property Insurance Corporation is anticipating a hardening market as a result of hurricane Irma and other global catastrophe events experienced in the second-half of 2017, and is budgeting appropriately. The Florida state-backed insurer has announced its risk transfer plans for 2018, revealing that it will look to secure $1.45 billion ... Read the full article
International Group secures lower rates for 2018 reinsurance renewal
15th December 2017
For the fourth consecutive year, the International Group of Protection & Indemnity Clubs has secured reinsurance renewal premium reductions on the Group programme, after finalising its 2018/2019 General Excess of Loss (GXL) reinsurance contract and the Hydra reinsurance programmes. The Group has announced that in spite of uncertainty in the global insurance ... Read the full article
EY expects robust reinsurance renewal negotiations
14th December 2017
Reinsurance renewal negotiations are expected to be robust as brokers look to secure multi-year deals for their clients at attractive rates, while reinsurers are likely to resist and look to push rates up after years of declining prices and the impacts of catastrophe events in the second-half of 2017, according ... Read the full article
Earnings to be positive in 2018 for reinsurers, but only just above cost of capital: Fitch
13th December 2017
For 2018, Fitch Ratings forecasts a return on equity (ROE) of 7.1% for its group of non-life reinsurance companies, which, while profitable, is only just above the estimated 6% to 7% cost of capital. The international financial services ratings agency underlines persistent underwriting and investment stress for global reinsurers, exacerbated by ... Read the full article
Bullish investors will be disappointed by 1/1 renewals: KBW
11th December 2017
Keefe, Bruyette & Woods (KBW) expects January 1 renewal rate increases to mostly disappoint bullish investors due to ample traditional and alternative capacity limiting rate increases in loss affected lines. KBW places retro rate increases at 20 - 30%, but is less hopeful for affected reinsurers, saying "bigger rate increases will ... Read the full article
Fitch remains negative on reinsurance, but underwriting results to improve in 2018
8th December 2017
In light of catastrophe losses experienced in the second-half of 2017, Fitch Ratings has maintained its negative outlook for the reinsurance sector, while the majority of reinsurer rating outlooks remain stable. As the January 1st, 2018 renewals fast approach, global reinsurance companies are expecting rate increases to improve the profitability of ... Read the full article
Moody’s stable on global reinsurers, buyers anticipate price hardening
8th December 2017
Moody's Investors Service holds a stable outlook for global reinsurance companies despite the impacts of third-quarter catastrophe losses, citing strong capital positions and the expectation of price hardening. Global reinsurers are expecting price hardening at the upcoming renewals in light of Q3 catastrophe losses that are estimated to reach around $100 ... Read the full article
Reinsurers’ upwards loss provisions in 2018 to fill $20bn loss gap: Jefferies
7th December 2017
Remaining catastrophe losses still unaccounted for are estimated by Jefferies to be in the $20 billion ballpark - a disparity likely to fuel reinsurance price rises when some companies' provide upwards loss provisions in 2018. "At first glance, it appears that the industry midpoint estimate of $95bn may have overestimated the ... Read the full article
Property catastrophe reinsurers set for rate hikes at 1/1 renewals: Morgan Stanley
7th December 2017
Property catastrophe reinsurers are set to see the first pricing increase in years as they race towards the January 1st renewals, Morgan Stanley said after speaking to 9 re/insurers at Bermuda meetings. “Jan 1 renewals have been slower than normal but early transactions indicate +20-30% rate increases in retro, +10-20% in ... Read the full article
Blue Capital Reinsurance Holdings optimistic on 2018 returns
1st December 2017
Blue Capital Reinsurance Holdings (BCRH) has released an optimistic projected return for 2018 based on the view that upcoming renewals will see catastrophe risk prices rise after the record-level of industry losses in Q3. The company's projected growth in fully converted book value per common share for 2018 is set at ... Read the full article
Markel CATCo raises over $2.3bn of fresh capital for 1/1
29th November 2017
Collateralized reinsurance and retrocessional investment fund manager, Markel CATCo Investment Management Ltd., has raised a huge $2.343 billion of new capital across its private and listed funds, placing the manager in a good position to meet demand at the key January 1st, 2018 renewals. Markel CATCo announced at the end ... Read the full article
Reinsurance price surges will be dampened by excess capital
29th November 2017
CreditSights anticipates a hardening of the rate environment going into the January 2018 renewals in the natural catastrophe affected lines of business, but not within the overall reinsurance market owing to excess capacity. Analysts suggest that price changes will follow patterns seen after 2005 when reinsurance capital was significantly depleted by ... Read the full article
Expectation of more realistic and sustainable rates “totally reasonable” says XL Catlin’s Hendrick
28th November 2017
Greg Hendrick, President of insurer and reinsurer XL Catlin's Property & Casualty (P&C) division, in a note on the re/insurance industry in light of third-quarter catastrophe events, has reiterated the company's expectation of rate improvements at the upcoming renewals and anticipates change to evolve positively over time. After expected catastrophe losses ... Read the full article
Very interesting year ahead after industry “wake up call” says Kurt Karl, Swiss Re
27th November 2017
The recent, devastating impacts of third-quarter catastrophe events and the California wildfires serve as a wake up call to the insurance and reinsurance industry, with 2018 expected to be a very interesting year for the marketplace, according to Swiss Re's Chief Economist, Kurt Karl. In an interview with Reinsurance News, Karl ... Read the full article
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