New US casualty market entrants are leading to rate stabilisation in excess of $10mn, while the London market is “becoming a bit more aggressive” than domestic carriers, according to Risk Placement Services.

The US umbrella and excess casualty market is seeing continued stress and change amid a greater focus from underwriters on managing capacity in the face of escalating verdicts and settlements along with tougher reinsurance renewal conditions, according to Risk Placement Services (RPS).

It was no surprise that US casualty was one of the dominant themes of the recent Q3 earnings season.

Risk Placement Services (RPS) launched an excess casualty sidecar earlier this year which offers a $5mn line on State National paper supported by a quartet of at least A- rated reinsurers, E&S Insurer can reveal.

Great American Insurance Group has promoted Todd Gambrell to divisional president, excess liability, succeeding John Bracca in the role.

Bowhead Specialty’s CEO has commented that the casualty market is “resilient” but conditions are more “nuanced” for its healthcare liability and professional liability divisions.

While 2024 could be categorised as a buyer’s market for property, casualty largely remained carrier-driven, with many classes experiencing another nine months of year-on-year price firming as underwriters focused on rate adequacy beyond trend in an attempt to counter rising loss costs, according to CRC Group’s Kristyn Smallcombe.

Wholesale and underwriting giant Amwins has been working on securing additional capacity for its brokers in a rehardening excess casualty market with the creation of a sidecar facility,

RenaissanceRe has communicated to brokers on its US excess casualty reinsurance book that it needs to see data-based evidence of cedants’ actions to address underlying portfolio exposure and suggested significant rate increases may be needed where loss cost trends outpace pricing,

Casualty business continues to make its way into the E&S market as standard carriers respond to elevated loss costs and shed middle market accounts as they seek to improve their profitability and reduce their combined ratios, according to Risk Placement Services (RPS)’s Russ Stein.

US casualty has arguably been the hottest topic in the sector over the last year amid growing concerns over deteriorating loss trends.

While CNA is confident rate rises in commercial auto and excess casualty – two of its segments most unfavourably impacted by social inflation – ensure it remains ahead of the rising loss costs it is faced with, CEO Dino Robusto believes further increases are needed.

Halfway through 2024 the anticipated broad rehardening of US casualty has not yet taken hold, but in the E&S market conditions remain “very firm” with high-single-digit increases on average, or double digits in challenged segments where further price correction is taking place.

The two-tiered US casualty market that emerged in 2023 has not gone away, with “modest” price rises for primary general liability (GL) coverage but greater increases in the umbrella and excess sectors as loss trends continue to outpace rate in most business lines, according to WTW.

James River CEO Frank D’Orazio has explained that his firm’s 7 percent drop in E&S premiums in Q1 was the result of non-renewals of excess casualty accounts with a heavy commercial auto component, with the executive also highlighting “strong rate increases” and record submissions.