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.
KBW confirm “cautious” stance on Bermudians following renewals disappointment
2nd February 2018
Keefe Bruyette & Woods (KBW) confirmed their previous “cautious” stance on Bermudians amidst January renewals that showed weak industry-wide pricing power. Analysts cited a disappointing renewal season, with a risk-adjusted average rate increase of about 5% - which dashed expectations for Bermudians after the massive $136-140 billion of estimated 2017 catastrophe ... Read the full article
Capital efficiency strategies drive alternative capital interest: GC Securities
30th January 2018
The collateralized reinsurance and retrocession markets continue to expand despite the impacts of 2017 catastrophe events, as capital management and capital efficiency strategies drive interest in insurance-linked securities' (ILS) mechanisms, according to GC securities, the capital markets and ILS arm of reinsurance broker Guy Carpenter. In a discussion with Reinsurance News around ... Read the full article
Reinsurers’ pricing outlook to improve into 2018: J.P. Morgan
30th January 2018
2018 could bring the much-awaited upswing for the reinsurance sector, with prices potentially increasing further into the year improving the pricing outlook after a 1/1 renewal season in which rate increases were broader than expected, according to J.P. Morgan. Analysts are optimistic that pricing appears to have stopped falling in essentially ... Read the full article
Modest rate increases for loss-affected U.S. lines, small improvements elsewhere: Fitch
25th January 2018
Global reinsurance pricing at the January 1st, 2018 renewals season saw modest rate increases in response to significant catastrophe loss activity in the second-half of 2017, with the biggest improvements occurring in loss-affected U.S. lines, notes Fitch Ratings. Unsurprisingly, property catastrophe rates in the U.S. experienced the biggest rate increases at ... Read the full article
Reinsurance rate increases to continue throughout 2018: S&P
25th January 2018
Global ratings agency Standard & Poor's (S&P) expects average rate increases of between 0% to 5% across the board in the reinsurance industry throughout 2018, maintaining the momentum seen at the January 1st renewals. S&P notes that following the high level of catastrophe losses in 2017, reinsurance pricing increased, on average, ... Read the full article
E&S renewal rates could rise 20% to 30% on loss affected accounts: Guy Carpenter
19th January 2018
The U.S. excess & surplus (E&S) lines property catastrophe reinsurance renewals in the second-quarter of 2018 could see rate increases of as much as 20% or 30%, for certain loss affected accounts, according to broker Guy Carpenter. Discussing the state of the excess and surplus (E&S) lines segment of the re/insurance ... Read the full article
Reinsurance market demonstrates its resilience at 1/1: Guy Carpenter
18th January 2018
Commenting on the state of the global reinsurance market after the key January reinsurance renewals, broker Guy Carpenter notes how resilience the market has been and that little in the way of capital has evaporated despite the major losses of last year. In fact, Guy Carpenter's analysis shows that reinsurance capital ... Read the full article
Alternative capital driving potentially flatter underwriting cycle: Fitch
16th January 2018
Fitch Ratings believes the expansion of alternative, or third-party capital has changed the dynamics of the reinsurance market, resulting in modest rate increases at the recent January 1st renewals and driving a potentially flatter underwriting cycle. The extremely active 2017 Atlantic hurricane season combined with powerful earthquakes in Mexico and devastating ... Read the full article
European reinsurers expected to show rate increases of 1.5%: Deutsche Bank
16th January 2018
Following initial commentary from the January 1st 2018 renewals season, analysts at Deutsche Bank remain positive on the European reinsurance sector, and are standing firm on expected price increases of 1.5% over the next two years and expects companies to report strong volume growth. Citing first data points on January renewals ... Read the full article
Modest market hardening across global specialty lines at 1/1: Willis Re
15th January 2018
Across multiple global specialty lines, a modest hardening of rates is expected in 2018, however, new capacity has entered the market in anticipation of the hardening market and will thus reduce the impact on rate growth, according to Willis Re's viewpoint report on January renewals. In the global specialty markets signs of ... Read the full article
Argo renews reinsurance sidecar vehicle Harambee Re for 2018
15th January 2018
Specialty re/insurer Argo Group International has announced the renewal of its Harambee Re sidecar reinsurance vehicle for 2018. Launched in 2013, Argo said the sidecar continues the firm's "successful track record of building relationships with third-party capital providers to support the company’s growing insurance and reinsurance portfolios." Argo Group Chief Executive Officer ... Read the full article
GIG-Egypt renews reinsurance deal with Hannover Re
12th January 2018
Egypt’s Arab Misr Insurance Group (GIG) has renewed a one-year reinsurance deal with Hannover Re under the same conditions and retention rates of last year, the Amwalalghad reported. The Egyptian Life Takaful Company is the first established Takaful life insurer in the Egyptian market, and boasts a good business profile across Egypt's insurance market. Last ... Read the full article
European reinsurers best placed to benefit from a flight to quality at renewals: Deutsche Bank
12th January 2018
Europe's big four reinsurance players are in a good starting position for the 2018 renewals and Deutsche Bank analysts expect the reinsurers to benefit from a flight to quality during renewals, as clients rethink their reinsurance programmes. In spite of the prolonged softened reinsurance marketplace and the huge level of catastrophe ... Read the full article
Reinsurance price increases could be short-lived: Aon Benfield
9th January 2018
Despite pricing in the global reinsurance industry increasing at the January 1st renewals after third and fourth-quarter 2017 catastrophe events, reinsurance broker Aon Benfield expects this trend to be short-lived as capital continues to enter the market, and warns it could have a lasting impact on the reinsurance market. According to ... Read the full article
United Insurance renews quota share & aggregate catastrophe reinsurance cover
9th January 2018
United Insurance Holdings Corp. (UPC Insurance) has renewed both its quota share reinsurance agreement and its aggregate excess of loss reinsurance arrangement for 2018. The new, 2018 quota share reinsurance agreement is effective December 31st, 2017, and protects UPC through its wholly owned insurance subsidiary, United Property and Casualty Insurance Company (UPCIC). A new, ... Read the full article
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