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.
Lagging mid-year renewals points to “permanently” damaged business model: KBW
25th May 2018
In meetings with insurance and reinsurance market participants in Bermuda, analysts at Keefe, Bruyette & Woods (KBW) heard that mid-year catastrophe reinsurance rate increases are lagging those seen at the Jan renewals, suggesting the old business model is "permanently" damaged. The majority of reinsurers KBW spoke with confirmed that mid-year reinsurance ... Read the full article
Misalignment of expectations entering Asia-Pacific renewals: Aon Benfield’s Attard
25th May 2018
Chief Executive Officer (CEO) of Aon Benfield Asia, George Attard, has said entering Asia-Pacific renewals at 1/1 sparked a divergence of expectations between reinsurers and insurers, in relation to what pricing the former were looking for and what buyers were looking to pay. Speaking with A.M. BestTV at the 29th EAIC ... Read the full article
Munich Re expects tepid mid-year renewal, but targets U.S. expansion
24th May 2018
Reinsurance giant Munich Re is anticipating a tepid rate environment at the mid-year 2018 reinsurance renewals, but is targeting further growth into the United States market, where its share remains below its global average. Like many other firms Munich Re's expectations for the mid-year June 1 and July 1 reinsurance renewals ... Read the full article
Florida Hurricane Catastrophe Fund targets $1 billion of reinsurance for 2018
22nd May 2018
After evaluating improved market conditions, the Florida Hurricane Catastrophe Fund (FHCF) is looking to secure $1 billion of reinsurance protection at the mid-year renewals, at a preliminary attachment point of $10.5 billion. Following the impacts of hurricane Irma in 2017, it appears the FHCF is looking to adjust its financing for ... Read the full article
Flat mid-year renewal possible despite volatile 2017: JMP Securities
21st May 2018
The condition of the property catastrophe reinsurance market following 2017 catastrophe events and the January and April renewals, suggests a flat mid-year renewals season is not out of the question and that average pricing will be up a few points at best, JMP Securities says. Following two days of meetings in ... Read the full article
Reinsurance business model challenged, more M&A likely: Morgan Stanley
21st May 2018
The long-term business model of the reinsurance industry is being challenged by the inability of reinsurers to command pay-back following the losses of 2017, leading to a likelihood of more sector mergers & acquisitions, according to analysts from Morgan Stanley. Having visited Bermuda recently to meet with reinsurers, Morgan Stanley's analyst ... Read the full article
Hannover Re CEO “not very optimistic” on Florida renewals
18th May 2018
Ulrich Wallin, the Chief Executive Officer (CEO) of global reinsurer Hannover Re, isn't very optimistic on the Florida renewals owing to the substantial availability of capacity that continues to drive a supply / demand imbalance, in spite of 2017 catastrophe events. Speaking during the firm's first-quarter 2018 earnings call, the CEO ... Read the full article
Heritage CEO Lucas praises comprehensive reinsurance program
18th May 2018
Bruce Lucas, the Chairman and Chief Executive Officer (CEO) of Heritage Insurance Holdings, has hailed the firm's comprehensive reinsurance program after recoveries from its capacity providers helped offset storm losses in the first-quarter of 2018. Speaking during the insurer's first-quarter 2018 earnings call, Lucas explained how its "comprehensive" reinsurance program further ... Read the full article
Rates won’t strengthen further, but equally won’t go backwards: Lancashire CEO
16th May 2018
Group Chief Executive Officer (CEO) of Lancashire Holdings Limited, Alex Maloney, doesn't expect rates for the firm's book to get any stronger from here unless loss activity picks up, but also doesn't see rates going backwards. Lancashire Holdings has now reported its first-quarter 2018 results, reporting minimal loss activity and positive ... Read the full article
Fierce competition leads to buyers market for cyber re/insurers: Fitch
16th May 2018
Profitable results in the fast-growing cyber space have led to fierce competition and a buyers market, with renewal rates expected to suffer, according to Fitch Ratings. Fitch observed that cyber continues to represent a significant growth opportunity for U.S property & casualty (P&C) re/insurers, driven by increasingly high-profile cyber-attacks and regulatory requirements. In ... Read the full article
TWIA targets $1.4bn reinsurance for 2018, as it raises Harvey loss estimate
14th May 2018
The Texas Windstorm Insurance Association (TWIA) is targeting $1.4 billion of reinsurance protection for the 2018-2019 Atlantic hurricane season, from a combination of both the traditional and alternative reinsurance markets, and has also increased its loss estimate for hurricane Harvey to $1.61 billion. TWIA, the residual market property insurer for the state ... Read the full article
Positive reinsurance pricing trends likely unsustainable, warns Fitch
11th May 2018
Fitch Ratings has predicted that the positive reinsurance pricing trends of the January and April renewals are unlikely to be sustainable in the long-term, with price increases expected to level out at upcoming mid-year renewals. Reinsurance pricing finally bottomed out and turned positive in response to the record-breaking catastrophe losses in ... Read the full article
United secures increased frequency & severity cover at reinsurance renewal
11th May 2018
United Insurance Holdings (UPC Insurance) has announced the completion of its 2018 catastrophe reinsurance program, which includes greater frequency and severity protection and an increased, overall program exhaustion point excess of $3.1 billion. The 2018 reinsurance program, that protects UPC Insurance, via subsidiaries American Coastal Insurance Company, United Property and Casualty ... Read the full article
There will be opportunities for continued price firming: Swiss Re CFO
10th May 2018
John Dacey, the Group Chief Financial Officer (CFO) of global reinsurer Swiss Re, noted improved rates in P&C business following the catastrophe events of 2017, but stressed an expectation that the market should have reacted stronger than it did, speaking during the firm's Q1 2018 earnings call. As global insurers and ... Read the full article
Weak pricing outlook for mid-year renewals, says Arch CEO
9th May 2018
Marc Grandisson, President and Chief Executive Officer (CEO) of Arch Capital Group, has predicted that pricing trends at the mid-year renewals are likely to remain flat or even decrease, largely due to industry posturing. Speaking during the company's Q1 2018 earnings call, Grandisson explained that at the recent April 1 renewals ... Read the full article
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