Renewals

Sompo International’s Donelan: Cat capacity will come out of market if buyers challenge clearance price

The upcoming 1 January renewal currently looks set to be relatively flat for cat reinsurance after adjusting for inflation and exposure, with any buyers attempting to push pricing down likely to meet with caution from reinsurers around their use of capacity, according to Sompo International’s global reinsurance CEO Chris Donelan.

Acrisure Re secures additional mid-year limit for strategically aligned SE clients

Acrisure Re was able to place additional cat limit to support the growth of a quartet of Florida and Southeast clients at renewals from April to June, navigating a shift in reinsurer appetite that required a range of structures and solutions, according to executives from the firm.

Cloutier: Aspen Re commits to “pushing” for further rate during MC renewal talks

Aspen CEO Mark Cloutier has become one of the first reinsurance leaders attending the Monte Carlo Rendez-Vous to publicly insist on “pushing” for further rate ahead of the 1.1 renewals.

Reinsurers look to hold the cat line to consolidate ’23 gains

As early renewal positioning begins in Monte Carlo today, reinsurers are looking to consolidate the significant gains made this year in property cat pricing, T&Cs and structure, with rates adjusted for risk and inflation expected to be relatively stable in the absence of major industry losses in the coming months.

Aon: competition on top layers of cat programs to exert downward pricing pressure

Aon predicts a 5 to 10 percent increase in global demand for property cat limit at 2024 renewals, which will be met by adequate supply from reinsurers in an orderly renewal where competition for higher layers could create downward pricing pressure.

GC: Reinsurance demand and reinsurers’ willingness to deploy capital set to grow at 1.1

Reinsurers will look to deploy more capital in 2024 in an environment of improved rate adequacy while demand for reinsurance increases, Guy Carpenter executives have predicted during a briefing addressing market conditions ahead of the 1 January reinsurance renewals.

Vesttoo scandal described as an “industry embarrassment” as leaders fear consequences

Leading executives gathered at The Insurer’s Pre-Monte Carlo Forum have predicted the Vesttoo scandal will be a key discussion point at next week’s Rendez-Vous, while returns on capital, pricing, avoiding the chaos of the last 1.1 and AI will also be on the agenda.

MS Re’s Goldie: “Real anger” at last 1.1 will overshadow Monte Carlo discussions next week

MS Reinsurance chief underwriting officer Charles Goldie says the stage is set for “difficult conversations” at next week’s Monte Carlo Rendez-Vouz, with the executive pointing to “real anger” amongst cedants over the uncompromising stance taken by some reinsurers in the run-up to 1 January 2023.

Fitch: Strong reinsurance underwriting results to continue into 2024

Global reinsurers are likely to see underwriting results remain favourable in the second half of 2023 and into 2024 as rate increases continue to outpace loss cost trends, according to Fitch Ratings, which highlighted firms’ solid underwriting profits, favourable reserve development and overall growth in net premiums written in the first six months of the year.

GC’s Becker: Insurers looking towards alternative capital as retentions increase

Rising attachment points on reinsurance programs are prompting insurers to consider alternative capital options to offset an increase in earnings volatility, according to Dan Becker, CEO of global strategic advisory at Guy Carpenter.

AIG adds retro cover for Validus, will likely buy ADC before RenRe deal closes

AIG leader Peter Zaffino has revealed that the firm bought additional retro cover for Validus Re and a reinsurance placement for Private Client Group at the mid-year renewals, adding that it will likely purchase an adverse development cover for Validus Re’s reserves prior to the divestiture to RenaissanceRe.

Allstate cuts back FL cat program and raises limit and retention on nationwide cover

Allstate has cut over $500mn of limit from the top of the excess of loss catastrophe reinsurance program for its standalone Florida carrier, with the stripped back and simplified tower now capping out at $1.285bn, a significant decrease from the $1.831bn last year.

CinFin’s average renewal price rises accelerated in Q2 as it targets further HNW growth

Average renewal price increases across all of Cincinnati Financial’s major business lines accelerated in Q2 2023, while the carrier is “positioned really well” to continue profitably growing its high-net-worth business, which saw its net premiums written (NPW) increase 35 percent during the period.

Upland locks in whole-account QS to support growth to $300mn and beyond

Upland Capital Group successfully placed its scaled-up whole-account quota share reinsurance contract on 1 April, and is set to further draw down on its up to $200mn of equity backing from Newlight Partners to support growth across its five current business segments, E&S Insurer can reveal.

DBRS Morningstar: Insurers’ ratings pressured by higher reinsurance costs and retentions

Increased risk retention at global insurers in response to higher reinsurance costs is causing negative pressure on ratings, according to DBRS Morningstar, which also suggested restrictions on new business in California may result in reputational damage for large US insurers.

Citizens confirms $1bn Berkshire line in “cost efficient” $5.38bn program

Florida’s Citizens placed what it described as a “cost efficient” risk transfer program of approximately $5.38bn of limit that was close to the $5.64bn initially targeted with a traditional placement that included a $1bn line from Berkshire Hathaway and a 68 percent increase in Nephila’s participation.

RPS: Some of the nearly 30 casualty entrants since 2020 won’t survive

The nearly 30 new casualty entrants in recent years have helped stabilise the rate environment in desirable classes of business such as commercial construction and manufacturing, Risk Placement Services has commented, but the broker warned “some of the new entrants won’t survive”.

Kingstone sets $325mn cat reinsurance limit, withdraws AM Best rating

Kingstone Companies reduced its total catastrophe reinsurance limit to $325mn at 1 July with an unchanged retention of $10mn, whilst withdrawing the B- AM Best rating for its principal operating subsidiary.

IAG renews Hannover Re QS and secures agg cover at 1.7

IAG has renewed its 2.5 percent whole-of-account quota share arrangement with Hannover Re, with the Australian carrier also securing aggregate and third and fourth event reinsurance covers at the 1 July renewal.

GC: US property cat RoL index up 35% YTD

Global property catastrophe reinsurance risk-adjusted rate increases ranged from 10 to 50 percent at the mid-year renewals with loss-impacted clients seeing higher pricing, according to Guy Carpenter.

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