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.
Reinsurance softening persists at mid-year renewals: Willis Re
3rd July 2017
Despite reinsurers' results continuing to deteriorate in the first-quarter of 2017, mid-year reinsurance industry renewals saw a continuation of the downward trend seen at January 1st and April 1st, according to Willis Re's latest 1st view report. The softening reinsurance market landscape persisted at the mid-year renewals, with buyers ... Read the full article
Florida insurers propped up by reinsurance capacity at all-time high: KBRA
20th June 2017
Abundant reinsurance capacity at ever-decreasing pricing has been a lifeboat for Florida insurers at the 2017 second quarter renewals, after their profitability has been shaken by rising water-loss and fraudulent AOB claims, the Kroll Bond Rating Agency (KBRA) highlighted in its Floridian market report. Floridian primary insurers were given a much-needed boost by ... Read the full article
Blue Capital nearly doubles indemnity reinsurance in June renewals
19th June 2017
In the June 1st renewals Blue Capital updated its portfolio to nearly double its indemnity reinsurance contracts to an expected total annual premium of $4.7 million, up by $2 million from the same period last year. The firm said it expects to underwrite business to produce a net rate on-line for the portfolio ... Read the full article
Overall, mid-year reinsurance renewals to be less negative than June 1st: RBC
13th June 2017
Despite a notable acceleration of price reductions in the reinsurance industry at the June 1st renewals, overall, analysts at RBC Capital Markets expect mid-year renewals to be less negative with prices starting to bottom out. Price declines in the global reinsurance market declined by an average of 5% at the recent ... Read the full article
Excess capacity continues to dominate Florida property catastrophe market: Peel Hunt
12th June 2017
Pressure on Florida focused reinsurers to cut back exposures is mounting as June 1 property catastrophe reinsurance renewals show continued rate declines as the long-awaited pricing bottom fails to materialise in a market dominated by excess capacity. Peel Hunt equity analysts have echoed JLT Re's estimate of a 5.1% rate drop ... Read the full article
IAG purchases additional $1 billion catastrophe reinsurance cover
9th June 2017
Australian general insurer Insurance Australia Group (IAG) has strengthened its reinsurance cover through the purchase of an additional $1 billion catastrophe protection on top of its existing $7 billion programme. The $1 billion reinsurance deal includes one prepaid reinstatement and begins on 1st of June running for a contractual period of 19 ... Read the full article
No sign pricing will bounce back quickly as reinsurance market nears bottom: Deutsche Bank
9th June 2017
The January 1st, 2018 renewal season could see pricing in the reinsurance market finally reach the elusive and much discussed bottom of the cycle, with the question then turning to how long the trough will be, suggests analysts at Deutsche Bank. Deutsche Bank has completed its seventh Global Financial Services Conference in ... Read the full article
Reinsurer ROEs to diminish further regardless of reduced loss activity: KBW
8th June 2017
Any "subsidy" to the return on equities (ROEs) of reinsurers is likely to diminish in response to persistent and worse-than-anticipated rate declines at recent renewals, regardless of fewer catastrophe events in the coming months, according to Keefe, Bruyette, & Woods (KBW). For the most part, the utilisation of reserves and the ... Read the full article
Heritage completes reinsurance placement at cheaper cost & improved terms
6th June 2017
Heritage Insurance Holdings, Inc.'s insurance subsidiaries, Heritage Property & Casualty Insurance Company (Heritage P&C) and Zephyr Insurance Company (Zephyr), have completed their respective 2017-2018 reinsurance programmes at a reduced cost and under improved terms. The programmes are incorporated into one reinsurance structure and includes traditional reinsurance, collateralized reinsurance, coverage by the Florida Hurricane ... Read the full article
Reinsurance rate declines accelerated at June renewal: JLT Re
2nd June 2017
The pace of decline across pricing and rate in the reinsurance market accelerated at the June 1st 2017 renewal, according to broker JLT Re, with rates down as much as 10% in places, and averaging a 5% decline. It's not the news reinsurers were looking for, but the excess levels of ... Read the full article
Hurricane season to bring additional challenges to U.S. P/C industry: Fitch
1st June 2017
The U.S. property & casualty insurance industry is strongly capitalised and has the capacity to withstand what's expected to be an active hurricane season ahead despite the continued challenges of competitive pricing, said Fitch Ratings' in its 2017 hurricane season report. The agency cautioned, however, that a major catastrophic hurricane could be hard-hitting ... Read the full article
Positive signs as loss-hit U.S. renewals experience rate increases
12th April 2017
There are some positive signs that help to reinforce the view that the reinsurance market is largely nearing the bottom of the pricing cycle, as some catastrophe loss hit U.S. nationwide property accounts experienced rate increases in April. Risk loss hit U.S. property reinsurance renewals in April 2017 experienced rate increases ... Read the full article
Japanese reinsurance renewals see broader coverage, lower rates
7th April 2017
According to reinsurance broker Willis Re, Japanese reinsurance renewals saw an expansion of coverage achieved by many ceding companies, and rates continued to decline in the region. The April 1st reinsurance renewals see a significant proportion of Japanese property insurance and property catastrophe reinsurance renewed and in 2017 market forces continued ... Read the full article
Rate reductions continue at April reinsurance renewal: Willis Re
3rd April 2017
Reinsurance rates have continued to decline at the April renewals, according to broker Willis Re, and while the rate of decline continues to be minimal there are market forces at work which will likely see them persist further into the year. The talk of last year's mid-year June and July renewals, ... Read the full article
Global insurance rate declines moderated in Q4: Marsh
16th February 2017
Marsh has released its Global Insurance Market Index for the fourth-quarter of 2016, showing insurance rates continued to moderately decline on average across all major, global business lines. Global property insurance rates provided the exception to the trend of more moderate declines, falling by 4.2% in Q4, this compares to a decrease of 3.9% ... Read the full article