Renewals

Navigating a complex landscape in the run-up to 1.1 renewals

As discussions get under way ahead of 1 January, The Insurer hosted a virtual panel debate to check the pulse of the market and discuss some of the biggest issues that are shaping the forthcoming renewals.

Scor XoL retro renewal out to market as eyes similar structure to 2021

Global reinsurer Scor’s excess of loss renewal has gone out to market in what will be once again closely watched as a bellwether for the state of the wider retro markets ahead of 1 January, The Insurer can reveal.

Balancing act

Ahead of 1 January, buyers can look forward to a healthy and differentiated reinsurance market with abundant capital, although reinsurers will seek to hold the line on pricing discipline and terms and conditions, says Charles Whitmore, president, global accounts at Guy Carpenter.

Homeowners insurtech Kin renews reinsurance at improved terms

Kin Insurance has renewed its reinsurance program with the homeowners insurtech seeing the cost of its coverage as a percentage of premium fall while also maintaining its first event retention at as-before terms despite its premium volume almost tripling.

AIG renewed Q2 reinsurance “at equivalent or improved pricing”; Validus cuts 1.6 Florida limits 40%

Peter Zaffino has revealed AIG placed 25 layers of reinsurance in the second quarter with flat or improved pricing in nearly every instance, while net limits on the Florida reinsurance business written by Validus reduced over 40 percent at 1 June.

Kingstone slightly increases reinsurance limit at 1.7 renewal

Northeast regional insurer Kingstone Companies increased its total catastrophe limit by $15mn to $490mn on its 1 July-incepting reinsurance program, with 10 new reinsurers joining the placement.

Marsh: Downstream energy pricing tapers at “rapid” pace in Q2

Downstream energy rates continued on a “rapid downward” trend over the course of the second quarter, with price increases averaging 10 percent at the end of June, down from 15-20 percent at the beginning of the quarter, a report from Marsh has highlighted.

Gallagher: Airline rate increases decelerate into high single-digit range

Rate increases are continuing to decelerate in the airline insurance segment with carriers shifting focus towards maintaining income, Arthur J Gallagher has reported in its latest Plane Talking report.

Assurant adds limit at the top of its cat tower for 2021

US insurer Assurant has increased the coverage from its property catastrophe program to $965mn in excess of $80mn for 2021, while lowering the retention for second and third events to $55mn.

IAG caps maximum event retention at A$169mn for FY2022

IAG has entered the new financial year with a maximum event retention of A$169mn ($127mn) through the combination of catastrophe covers it has in place.

Suncorp maintains A$6.5bn upper limit as cat program renews largely unchanged

Suncorp has maintained an upper limit of A$6.5bn ($4.85bn) on its reinsurance program for the 2022 financial year, with the group’s maximum event retention remaining at A$250mn.

Willis Re: Uptick in cat bond issuance to continue into 2022

Second-quarter catastrophe bond issuance of around $6bn maintained the momentum that began in the second half of last year – and which is set to continue through 2021 – with the 1 January 2022 renewal providing an opportunity to further expand the market segment, according to Willis Re.

Vickers: Ceding companies more confident in retaining more casualty business

Ceding companies are increasingly confident in “eating their own cooking” on casualty and professional liability business, leading some to retain more premium previously ceded via quota shares and instead add excess of loss (XoL) protection, according to Willis Re International chairman James Vickers.

Willis Re: Reinsurance market moving towards equilibrium

Although reinsurance rate increases were seen across most major lines and territories at 1 June and 1 July renewals, reinsurers frequently had to accept firm order terms below their initial quotes as the market moved towards an equilibrium, according to Willis Re.

Reinsurers disappointed at LatAm’s 1.7 renewals as capacity curtails increases

Latin American reinsurers have described pricing at the 1 July renewal as “disappointing”, with rates up only modestly on a risk-adjusted basis for the majority of loss-free accounts.

FedNat ups agg reinsurance cover for 2021-2022 at “more restrictive terms”

FedNat has placed its 2021-2022 excess-of-loss catastrophe reinsurance program, which provides $1.41bn of single-event reinsurance coverage and up to $2.25bn of aggregate coverage at a total cost of $287.7mn, with the Florida-based insurer noting the “more restrictive terms” on offer from reinsurers.

CCRIF members transfer $1bn+ of cat risk ahead of 2021 hurricane season

CCRIF’s 23 members all renewed their parametric insurance coverages ahead of the beginning of this year’s 2021 Atlantic hurricane season with the 22 governments and one electric utility protected by the facility collectively ceding over $1bn of risk to the programme.

USI: Aviation pricing to stay hard into 2022 but rate curve moderating

The aviation insurance market will continue to harden this year and into 2022 although major recent renewals suggest that even though carriers are still pushing for price rises there is increased competition for new accounts and the rate curve is beginning to moderate in response, according to USI.

ILS funds wrote half of Citizens’ traditional placement

Although Nephila’s $600.8mn participation across Florida Citizens’ $1.649bn traditional reinsurance dwarfed that of all other markets writing the 1 June cover, significant lines from DE Shaw Re and LGT Capital meant that ILS funds accounted for more than 50 percent of the total.

New Zealand EQC increases reinsurance cover to NZ$7bn as premiums rise 11%

New Zealand’s Earthquake Commission (EQC) has increased the total limit on its Aon-brokered reinsurance program to close to NZ$7bn ($5.05bn) at its latest renewal.

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