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.
United Insurance renews cat reinsurance programs
3rd June 2020
United Insurance Holdings Corp. (UPC Insurance) has renewed its catastrophe reinsurance programs at June 1, including an increased multi-event cascading limit of $3.257 billion. The limit was increased by $101 million, or 3.2% on the $3.156 billion of multi-event cascading limit that UPC purchased for its 2019/20 core catastrophe reinsurance program. It ... Read the full article
FedNat agrees terms of cat reinsurance renewal, cites hardening market
2nd June 2020
FedNat Holding Company (FedNat) has announced the terms of the renewal of its 2020-2021 catastrophe reinsurance program, securing $1.3 billion of single-event reinsurance coverage and aggregate coverage of up to $1.9 billion. The aggregate reinsurance limit of $1.9 billion represents a slight increase on the previous year, while the single-event cover, ... Read the full article
NMI Holdings secures new quota share reinsurance cover
2nd June 2020
Mortgage insurance specialist NMI Holdings has announced that its wholly owned subsidiary, National Mortgage Insurance Corporation (National MI), has entered into a new quota share reinsurance arrangement. Under the new arrangement, National MI will cede 10.5% of its primary business to a broad panel of reinsurers. The coverage applies to business written ... Read the full article
Property catastrophe reinsurance rates rise 26% at June 1st: Hyperion X
2nd June 2020
Data from Hyperion X Analytics reveals that property catastrophe reinsurance rates-on-line increased by an estimated 26.1% at the June 1st, 2020 reinsurance renewals. The company has released its June 1st property cat rate-on-line index, which indicates average risk-adjusted rate increases of 26.1%. Prior to the COVID-19 pandemic, reinsurance rates were expected to ... Read the full article
FHCF will not renew its private market reinsurance in 2020
28th May 2020
It's been announced that the Florida Hurricane Catastrophe Fund (FHCF) will not be renewing its expiring $920 million private market reinsurance placement for 2020. The 2019-2020 private reinsurance placement, which was led by reinsurers Swiss Re and RenaissanceRe, is scheduled to expire ahead of the 2020 Atlantic hurricane season. However, in ... Read the full article
Reinsurance rate increases to continue through 2021: KBW
22nd May 2020
Analysts at KBW believe that reinsurance rate increases will be sustained at least through to January 2021, as reinsurers contend with higher retrocession costs. The firm released its forecasts for the upcoming June and July renewals following a series of virtual meeting with Bermuda executives from two reinsurance brokers and four ... Read the full article
Florida renewals a “perfect storm” of challenges, warns Demotech
20th May 2020
Financial analysis firm Demotech has warned that the Florida reinsurance renewals will bring a myriad of challenges for the market, with COVID-19 issues piling on top of a shortage of retro cover, continued loss creep, and legislative issues. Even before the pandemic, analysts had anticipated that 2020 would not be business ... Read the full article
Palomar completes June reinsurance renewal
19th May 2020
Specialty property insurer Palomar Holdings has announced the successful completion of its June 1, 2020 reinsurance programs. The company procured $200 million of incremental limit for California earthquakes, $300 million of incremental limit for all earthquake zones, and $80 million of incremental windstorm limit. Reinsurance coverage now exhausts at $1.4 billion for ... Read the full article
FedNat CEO sees reinsurance rate increases as “extremely manageable”
18th May 2020
Mike Braun, the Chief Executive Officer (CEO) of FedNat Holding Company (FedNat), has said that while the firm expects reinsurance pricing to increase, movements are anticipated to be "extremely manageable" for the insurer. Speaking during the company's first-quarter 2020 earnings call, CEO Braun discussed FedNat's 2020-2021 reinsurance renewal amid an expectation ... Read the full article
Reinsurance markets to remain healthy at mid-year renewals: Everest Re’s Doucette
15th May 2020
Everest Re is expecting the reinsurance markets to remain healthy at the upcoming mid-year renewals, despite uncertainties from the COVID-19 pandemic, according to John Doucette, EVP, President and CEO of the company’s Reinsurance Division. Speaking on a call alongside the release of Everest Re’s Q1 results, Doucette noted that the ... Read the full article
Suncorp “well advanced” in cat reinsurance renewal
11th May 2020
Australian insurer Suncorp has said that it remains “on track” to complete the placement of its reinsurance renewal program by June 30th, following major bushfire and hail losses earlier in the year. The company reports that it is “well advanced” with the placement of its main catastrophe program and is ... Read the full article
Florida Citizens targets $1.581bn reinsurance & cat bond renewal for 2020
4th May 2020
Florida’s Citizens Property Insurance Corporation is out in the market seeking roughly $1.581 billion of fresh reinsurance coverage from its 2020 reinsurance renewal of both traditional and catastrophe bond coverage. Our sister publication Artemis was first to report today that Florida Citizens is back in the catastrophe bond market targeting ... Read the full article
Cat reinsurers broadly optimistic about mid-year renewal pricing: KBW
24th April 2020
Catastrophe reinsurers attending the AIFA 2020 conference remain broadly optimistic about mid-year renewal pricing, with some estimated increases approaching 50% for the Japan-focused 4/1 renewals, according to analysts at Keefe, Bruyette & Woods. In addition, roughly 20% increases are expected for the Florida-focused 6/1 renewals, with the delta reflecting Japan’s significant ... Read the full article
SCOR achieves 6.6% pricing increase at April renewals
22nd April 2020
SCOR Global P&C has reported a 6.6% overall increase in pricing at the April 1 renewals, which saw the reinsurer restructure some of its catastrophe business in Japan. The company grew gross premiums up for renewal by 5.7% at constant exchange rates to €504 million, and generated a 5.4% growth in ... Read the full article
Mid-year renewals expected to be on-time: Priebe, Guy Carpenter
14th April 2020
The mid-year reinsurance renewals at June and July 1st 2020 are expected to proceed without any major issues due to the COVID-19 pandemic, as the industry prepares to negotiate via video conference, David Priebe, Chairman of Guy Carpenter told us. Speaking with Reinsurance News, the Chairman of reinsurance broker Guy Carpenter ... Read the full article
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