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.
Premium renewal trends positive across Q1: IVANS
9th April 2020
Premium renewal rates continued to increase during the first quarter of 2020 for almost all major commercial lines products, according to the IVANs Index, a division of Applied Systems. The IVANS Index is released on a monthly basis as a data-driven report of current conditions and trends for premium rate renewal ... Read the full article
Organized 1/4 renewals a prudent approach in light of COVID-19: Willis Re’s Kent
7th April 2020
The majority of protection buyers started their April 1st reinsurance renewal negotiations well in advance, which, in light of the challenges driven by the COVID-19 pandemic proved to be a prescient approach, according to James Kent, global Chief Executive Officer (CEO) of Willis Re. As noted by reinsurance brokerage Willis ... Read the full article
Reinsurer appetite for catastrophe risk generally stable, says Moody’s
3rd April 2020
Disclosures of January 1st, 2020 modelled probable maximum loss (PML) figures reveals that reinsurance companies looked to take advantage of improved pricing and deployed greater levels of capital to property catastrophe risks, according to Moody's Investors Service. After heavy catastrophe loss years in both 2017 and 2018 on the back of ... Read the full article
Japan wind and flood rates up 30-50% at April renewals: Willis Re
2nd April 2020
Willis Re has reported that reinsurance rates were up by between 30% and 50% for Japanese wind and flood risk at the recent April 1 renewals. The broker said that these renewals saw higher rate increases than occurrence layers, with reinsurers applying significant pressure for restructuring. The renewals were also reported ... Read the full article
kWh Analytics closes Swiss Re-backed 32 MW Solar Revenue Put
1st April 2020
Solar risk management firm kWh Analytics has closed a Swiss Re-funded Solar Revenue Put for a portfolio of 4,000 projects totalling roughly 32 MW DC of capacity. This is the first publicly announced repeat closing with the Solar Revenue Put. It is structured as an insurance policy on solar production and PPA ... Read the full article
Loss-hit lines up +50% during a steady April reinsurance renewals: Willis Re
1st April 2020
Despite the disruption caused by the ongoing COVID-19 pandemic, reinsurers took a measured approach to the April renewals and services were provided without interruption, reports reinsurance broker Willis Re in its latest 1st View renewals report. According to Willis Re, the reinsurance broking arm of Willis Towers Watson, the global reinsurance ... Read the full article
Premium renewal rates stay on upward trend in February: IVANS
9th March 2020
The February results of the IVANS Index, a division of Applied Systems, show that nearly all lines of business experienced an increase in average premium renewal rate year-over-year. Compared with the previous month, Commercial Auto and Commercial Property lines saw the greatest average rate increases, while Umbrella had the most significant ... Read the full article
Fednat’s reinsurance spend up $8mn per quarter, says CEO
6th March 2020
Florida based primary insurer FedNat is currently working through an $8 million per quarter increase in its reinsurance spend, according to CEO Mike Braun. Speaking in an earnings call alongside the release of the company’s 2019 results, Braun said that FedNat had seen substantial rate increases in the reinsurance market in ... Read the full article
Capitalisation to remain strong, reinsurers to be more cautious: KBRA
27th February 2020
Traditional reinsurance companies are expected to report strong levels of capital at year-end 2019 and while capitalisation is likely to remain adequate throughout 2020, reinsurers are expected to become more cautious, according to Kroll Bond Rating Agency (KBRA). The recovery in the capital markets through the first nine months of 2019 ... Read the full article
Concentration of rising prices limits positive influence on profits: Moody’s
27th February 2020
Analysts at Moody's have said that the outcome of the January 1st, 2020 reinsurance renewals are in line with expectations, and, has noted that the concentration of price hikes is limiting any positive impact on profitability for market players. Financial services ratings agency, Moody's is the latest to comment on the ... Read the full article
Skuld achieves 4.6% growth in 2020 P&I renewals
27th February 2020
Marine insurer Skuld has achieved a 4.6% net increase in mutual P&I tonnage from 2019 to 2020, following the renewals that completed on February 20th. Skuld’s continued growth at the renewals brings its mutual P&I tonnage to 95.3 million gross tonnes (GT). In addition to the mutual P&I business, growth was also ... Read the full article
AXA looks to address AXA XL volatility with additional reinsurance
20th February 2020
In an effort to minimise earnings volatility within its commercial insurance and reinsurance arm, AXA XL, French insurer AXA has purchased some additional reinsurance covers. The global insurer and reinsurer today announced its results for 2019, reporting a higher net income and elevated total revenues within AXA XL. However, while AXA ... Read the full article
TWIA raises 2020 reinsurance target to $2.1 billion
19th February 2020
The Texas Windstorm Insurance Association (TWIA) has increased its target amount of reinsurance protection for the 2020 catastrophe year to $2.1 billion, with the Board directing TWIA staff to place a mix of traditional reinsurance and catastrophe bond protection. In December of last year, TWIA said that it expects to ... Read the full article
Consensus around “significant” price movement at Japan renewals: JMP
19th February 2020
Following meetings with insurers, reinsurers and brokers JMP Securities analysts are anticipating significant positive pricing change in Japan’s upcoming April 1 renewals, roughly twice the magnitude seen in 2019. JMP notes that, while pricing changes will vary substantially by both layer of a program and by individual cedant, a surprising amount ... Read the full article
AIG continued to refine & enhance reinsurance use at 1/1
14th February 2020
Global insurer and reinsurer AIG continued to refine and enhance its reinsurance buying strategy at the recent Jan 1st, 2020 renewals, securing an improved catastrophe reinsurance program at a lower cost when compared with the previous year. In recent times, AIG has made some significant changes to its use of ... Read the full article
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