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.
US property cat reinsurance rates up by 15% in 2022: Guy Carpenter
25th July 2022
So far this year, property catastrophe reinsurance rates-on-line in the U.S. have risen by almost 15%, representing the largest increase in the Guy Carpenter U.S. Property Catastrophe Rate on Line Index since 2006. Reinsurance broker Guy Carpenter's index is a proprietary index of U.S. property catastrophe reinsurance rate-on-line movements, so ... Read the full article
H1 2022 “most challenging property market for years” – Klisura, Guy Carpenter
25th July 2022
The first half of 2022 was “the most challenging property market we have seen in a number of years”, according to Dean Klisura, President and Chief Executive Officer of Guy Carpenter. Speaking during Marsh McLennan’s Q2 2022 earnings call, he said that US property catastrophe rates have ... Read the full article
Catastrophe losses erode almost half of Travelers’ aggregate reinsurance retention
22nd July 2022
US primary insurer Travelers accumulated $935 million of qualifying losses towards the aggregate retention of its $2 billion property catastrophe reinsurance treaty during H1 2022, according to the company's Chief Financial Officer (CFO), Dan Frey. Yesterday, Travelers announced a decline in net income for the second-quarter on the back of ... Read the full article
Travelers upsizes northeast catastrophe reinsurance by $100m at July renewal
21st July 2022
US primary insurance carrier Travelers has grown the size of its main Northeast Property Catastrophe Excess-of-Loss Reinsurance coverage by $100 million at the July 1st, 2022, reinsurance renewals, as the firm saw price increases aligned with those seen on its inwards book. For 2022, the Northeast Property Catastrophe reinsurance agreement sees ... Read the full article
Aeolus launched Florida-focused reinsurance facility at June 1 renewals
12th July 2022
Bermuda domiciled reinsurance and insurance-linked securities (ILS) focused investment fund manager, Aeolus Capital Management Ltd., launched a largely Florida-focused reinsurance facility at the June 1st, 2022, renewals, called Corbel, according to Artemis' sources. Our ILS-focused sister site, Artemis, reported yesterday that Corbel is mostly focused on providing reinsurance capacity to cedents ... Read the full article
“Demand for catastrophe bonds outpacing industry’s ability to meet them” – Aon
8th July 2022
Aon’s latest Reinsurance Market Dynamics: June and July Reinsurance Renewals says that the current demand for catastrophe bonds is outpacing the ability of the industry to supply them. According to the report, the current situation has arisen because insurers and reinsurers have turned increasingly to alternative capital markets to supplement traditional ... Read the full article
Assurant finalises 2022 property cat reinsurance program
7th July 2022
Assurant has finalised its 2022 property catastrophe reinsurance program, successfully placing $1.16bn in loss coverage within its main U.S. program. At the same time, the company has maintained an $80m retention per event, limiting its financial exposure against severe weather and other hazards. In addition, the company said it was able to ... Read the full article
Gallagher Re finds pricing in US Nationwide market up by 40% in spots
7th July 2022
Gallagher Re’s latest mid-year renewals report has found that property rate movements in the US has increased by up to 40%. Pricing in some cases in the Florida market have even increased by up to 50%. In the report, Gallagher Re stated that risk excess and catastrophe capacity started to become ... Read the full article
Stand-alone protection for cyber ‘essentially unobtainable’ at economical terms: Gallagher Re
6th July 2022
According to Gallagher Re’s mid-year renewals report, stand-alone risk protection for cyber is essentially unobtainable at economical terms, however some cyber risk protection is still available via composite casualty treaties. The report also highlights how there is a continued appetite on the proportional side for supporting existing programmes as both cyber ... Read the full article
CEA’s risk transfer program declines to roughly $9.3bn
6th July 2022
The California Earthquake Authority (CEA) has seen a roughly $600 million dip in its total capacity from the end of 2021, as the entity's risk transfer program declines in size to just shy of $9.3 billion amid a firming reinsurance market. Total capacity, as of the end of May 2022, stood ... Read the full article
IAG finalises aggregate reinsurance cover for FY 2023
6th July 2022
Australian insurer IAG has said that it has finalised its aggregate reinsurance cover the financial year ending 30 June 2023. In a statement, the firm said that its FY23 cover provides protection of $350m in excess of $500m, the latter figure up from $400m from last year. Like last year, individual ... Read the full article
$5bn+ of additional reinsurance limit sought by carriers at mid-year renewals: Aon
5th July 2022
Buyers sought an estimated additional $5 billion+ in limit at the mid-year 2022 reinsurance renewals, driven mostly by elevated inflation expectations, and also heightened secondary peril losses, reports Aon. "Faced with inflation-driven exposure growth, as well as increased frequency of secondary perils, many insurers entered the renewals looking to purchase higher ... Read the full article
Inflation a hot topic of discussion for casualty reinsurance placements: Gallagher Re
5th July 2022
According to Gallagher Re’s mid-year renewals report, inflation remained an ever-increasing topic for discussion for casualty reinsurance placements. The report notes that reinsurers were seeking client by client explanations in relation to the management of this risk in reinsurance placements Moreover, with an increased focus on pricing adequacy from reinsurers, the recent ... Read the full article
Suncorp makes reinsurance adjustments amid “material hardening”
4th July 2022
Australian primary insurer Suncorp has made some adjustments to its FY23 reinsurance placement to reflect "the material hardening" of the reinsurance market after heightened natural catastrophe activity. In line with the firm's FY22 July reinsurance renewal, Suncorp has maintained the overall maximum retention at $250 million. However, the upper limit of the ... Read the full article
Peak Re reports $2,145mn GWP for 2021
4th July 2022
Peak Reinsurance Company Limited – the Hong Kong-based global reinsurer, has reported a 9% increase in gross written premiums (GWP) in 2021, as it rises to $2,145 million, compared to $1,966 million from 2020. Net profit for the year was $73.2 million, compared to $87.1 million in FY2020. At the same time, ... Read the full article
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