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.
Reinsurance pricing could be jeopardised by capital influx, reports suggest
4th October 2019
The much-improved pricing environment in the reinsurance sector could be jeopardised if catastrophe losses remain low for the rest of 2019, according to reports from the Financial Times, as an influx of alternative capital capacity returns to the market. The publication noted that reinsurers have benefited from lower level of natural ... Read the full article
D&O rates improve as carriers push to restore profitability: Fitch
30th September 2019
Premium pricing has improved significantly for directors and officers (D&O) liability in 2019 as carriers work to restore profitability, according to analysts at Fitch Ratings. Fitch noted that D&O liability business has seen several years of weaker performance, driven by flat premium growth and less favourable claims trends in a shifting ... Read the full article
Price increases will fall short of hard market: Canaccord Genuity
18th September 2019
While the industry seems confident that rates will continue to increase in 2020, analysts at Canaccord Genuity argue they will not be enough to move reinsurance into ‘hard market’ territory. Based on its meetings at the Reinsurance Rendezvous in Monte Carlo this year, Canaccord Genuity believes that the market is anticipating ... Read the full article
Jebi losses stabilising, set to drive price firming in April: JMP Securities
16th September 2019
Analysts at JMP Securities believe that insured losses from Typhoon Jebi appear to be stabilising in the region of $15 billion to $16 billion. If losses do ultimately settle at this level, the cost to the insurance and reinsurance industry will have been more than twice as high as initial estimates ... Read the full article
Reinsurers confident of further rate increases, reports Morgan Stanley
13th September 2019
Reinsurers largely seem confident that the pricing momentum built over 2019 will continue into 2020 as the industry pushes for more sustainable margins, according to analysts at Morgan Stanley. Morgan Stanley’s analysis was based on its conversations with reinsurers at the Rendezvous event in Monte Carlo this year, who mostly seemed ... Read the full article
Munich Re expects “further stabilisation” of rates: Torsten Jeworrek
11th September 2019
Munich Re is expecting to see “further stabilisation and price increases” in the reinsurance market, according to Torsten Jeworrek, a member of the company’s board of management. Speaking at a briefing during the Reinsurance Rendezvous event in Monte Carlo this week, Jeworrek said that the reinsurance industry had seen “a worldwide ... Read the full article
Reinsurance pricing is still too low, says Swiss Re CEO Mumenthaler
10th September 2019
Christian Mumenthaler, Chief Executive Officer (CEO) at Swiss Re, believes pricing in the property and casualty (P&C) reinsurance sector is still at an unacceptable level despite improvements over the last two years. Mumenthaler told Reinsurance News in a recent interview that he was confident the market would continue to bring pricing ... Read the full article
SCOR needs more pricing improvements to be sustainable, warn execs
9th September 2019
The property and casualty (P&C) reinsurance market has seen some “useful” price firming in 2019, but further increases will be required to put SCOR back on track for sustainable profitability, according to its management. Speaking at the Reinsurance Rendezvous event in Monte Carlo, Chief Executive Officer (CEO) Denis Kessler said that ... Read the full article
Stable reinsurance outlook underpinned by pricing & capital: Moody’s
3rd September 2019
Rating agency Moody’s has maintained its stable outlook for the global reinsurance industry going into 2020, with strong capitalisation and rising prices offset by low interest rates and falling reserve releases. Analysts at the firm noted that reinsurers’ regulatory and economic capital has remained resilient thanks to increased use of retrocession, ... Read the full article
Secular headwinds to continue for reinsurers, but rates may rise 5% in 2020
3rd September 2019
Reinsurance firms are expected to continue facing "secular headwinds" to their business models in 2020, with rate rises of around 5% expected at renewals next year, but these may not be sufficient to offset the continued competitive trends faced. This is according to rating agency S&P Global Ratings, who said this ... Read the full article
Not a “one year and done” rate increase situation: Hendrick, AXA XL CEO
28th August 2019
The insurance and reinsurance market is not looking at a "one year and done" rate increase situation, as a number of factors suggest there could be more to come, according to AXA XL CEO Greg Hendrick. Hendrick believes that while we haven't seen the kind of capital erosion required to turn ... Read the full article
Commercial carriers poised to benefit from continued rate improvements: JP Morgan
21st August 2019
Broad industry pricing improvements are expected to provide a tailwind to commercial carriers’ top-line growth and earnings, according to JP Morgan analyst Keith Cornelius. This is likely to be supported by year-on-year improvements in bet investment income, as well as a manageable quarter in terms of catastrophe activity. Cornelius believes that small ... Read the full article
FHCF renews $920m program. Swiss Re now largest market, as RenRe downsizes
21st August 2019
The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program for 2019 at a slightly smaller size of $920 million, but with flat risk-adjusted pricing. Swiss Re is now the largest participating market in the FHCF's reinsurance program, as the reinsurer took the same $185 million slice as the prior ... Read the full article
Inadequate pricing & market disruption to push rate increases into 2020: Fitch
20th August 2019
Reinsurance rate increases are expected to continue into the 2020 renewals due to ongoing disruption in the market and inadequate pricing levels, according to Fitch Ratings. Fitch noted that reinsurance pricing turned decidedly positive at the mid-year 2019 renewals, following disappointing flat and generally stable rates at January. Momentum has largely been ... Read the full article
Travelers renews cat reinsurance at July 1, but eats into aggregate retention
23rd July 2019
U.S. primary insurer Travelers has disclosed the terms of the catastrophe reinsurance treaties it purchased at the recent July 1, 2019 renewals. Management also revealed on an earnings conference call today that the company has incurred just under $800 million towards the attachment point of its new catastrophe reinsurance treaty. This represents ... Read the full article
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