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 rates inadequate to deploy additional capital: Grandisson, Arch
15th February 2019
Despite some signs of tightening capacity within the retrocession and facultative markets, in many instances, rate levels relative to risk remain inadequate to deploy additional capital, according to Marc Grandisson, President and Chief Executive Officer (CEO) of Arch Capital Group. Speaking during the Bermuda-based insurer and reinsurer's Q4 and full-year 2018 ... Read the full article
Zurich bought more, tweaked reinsurance protection: CFO Quinn
12th February 2019
The Chief Financial Officer (CFO) of global insurer Zurich, George Quinn, recently discussed the firm's increased reinsurance purchase as it continues to tweak its protection in light of attractive pricing. Speaking during the insurer's Q4 2018 earnings call, CFO Quinn highlighted the firm's increased utilisation of reinsurance, especially around the casualty ... Read the full article
Property reinsurance rates “inexplicably flat” at 1/1, says Markel’s Whitt
11th February 2019
Richard Whitt, Co-Chief Executive Officer (CEO) and Director of Markel Corporation, has said that property reinsurance rates were “inexplicably flat” at the recent January renewals. Speaking during a company earnings call, Whitt noted that reinsurance rates were disappointing at the 1/1 renewals despite two consecutive years of heavy catastrophe losses across ... Read the full article
Investor losses drive retro pricing hikes amid flat 1/1 market: A.M. Best
11th February 2019
Large catastrophe losses and ongoing loss creep resulted in pricing hikes of up to 35% for the retrocession segment at the January 2019 renewals, as investors pushed for higher returns amid a predominantly flat rating environment, according to A.M. Best. Analysts said that property catastrophe retrocession was the brightest spot at ... Read the full article
Donegal restructures reinsurance program after heavy Q4 losses
8th February 2019
U.S primary holding company Donegal Group Inc. has restructured its reinsurance program following heavy losses in the fourth quarter of 2018 due to natural catastrophes, low investment returns, and underperformance in its personal and commercial auto lines. Donegal’s 2019 reinsurance program, which applies to its insurance subsidiaries and Donegal Mutual Insurance ... Read the full article
TWIA to seek at least $2.1bn of reinsurance for 2019
8th February 2019
The Texas Windstorm Insurance Association (TWIA) is targeting at least $2.1 billion of reinsurance protection for the 2019 hurricane season from a combination of the traditional and alternative reinsurance markets, following approval from its Board. TWIA, the residual market property insurer for the state of Texas, will work with reinsurance broker ... Read the full article
SCOR expands its P&C reinsurance book by almost 10% at renewals
7th February 2019
SCOR, the France headquartered reinsurance firm and one of the top-four reinsurers globally, grew its property and casualty book by almost 10% during the key January renewal season. SCOR said that at constant exchange rates the P&C reinsurance book was renewed at EUR 3.2 billion, up from EUR 2.9 billion, an ... Read the full article
Munich Re profits fall, reports stable pricing at 1/1
6th February 2019
Global reinsurance giant Munich Re saw fourth quarter profits fall 56% year-on-year to €238 million following the impact of the California wildfires in November and volatile financial markets towards the end of year. The company’s net profit of €2.2 billion for the year was, however, in line with its target of ... Read the full article
Australian terror pool renews AU$3.3bn retro reinsurance program
4th February 2019
The Australian government’s terrorism reinsurance agency, Australian Reinsurance Pool Corporation (ARPC), has renewed its AU$3.315 billion (US$2.3 billion) retrocession reinsurance program for 2019. The cover, along with ARPC’s net assets and a $10 billion Commonwealth guarantee, provides capacity in the event of a declared terrorism incident against commercial and eligible property ... Read the full article
More price action required across most re/insurance lines: AXIS CEO Benchimol
1st February 2019
Price action in reinsurance lines was evident in some areas at the January renewals with little reductions and response to loss activity. However, global catastrophe pricing remained a disappointment for AXIS Capital at the recent renewal, with President and Chief Executive Officer (CEO), Albert Benchimol calling for more price action ... Read the full article
M&A levels to continue amid adverse market conditions: JMP Securities
1st February 2019
Mergers and acquisitions (M&A) activity is to continue at heightened levels through 2019 as re/insurers try to find opportunities for growth against a backdrop of adverse market conditions, according to analysts at JMP Securities. JMP explained that consolidation would offer an attractive route to growth for many companies due to ongoing ... Read the full article
April still sweet spot for 2019 renewals: Analysts
31st January 2019
In contrast to the recent 1/1 renewals, which would neither support nor derail the sub-sector, Analysts at Deutsche Bank (DB) see the upcoming April renewals as a positive catalyst for reinsurers due to the role of Japanese business. Probably more than any other traditional market, Japan is still a traditional payback ... Read the full article
S&P notes orderly but somewhat disappointing renewals
29th January 2019
Targeted price increases limited to loss-affected policies and regions were evident at the recent January 1st renewals, and while the overall process was orderly, it was somewhat of a disappointment following recent industry losses, says ratings agency S&P. The ratings agency states that during the most recent renewal period, it witnessed ... Read the full article
40% retro hike to bump property reinsurance pricing to double digits: Credit Suisse
28th January 2019
Property reinsurance price increases are expected to rise from current low-single digit levels to double-digits as 2019 progresses, according to analysts at multinational investment bank and financial services firm Credit Suisse. Credit Suisse underlines the ~40% retrocessional pricing increase reinsurers have faced, following substantial retro market losses in both 2017 and ... Read the full article
Zurich CEO optimistic about P&C rates in 2019
25th January 2019
Mario Greco, Chief Executive Officer of Zurich Insurance Group, has said that the company is optimistic about the prospects for property and casualty (P&C) re/insurance pricing in 2019. Speaking in an interview with CNBC at the World Economic Forum 2019 event in Davos, Switzerland this week, Greco said that market conditions ... Read the full article
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