Renewals

Eeyore or Goldilocks: what’s happening with (re)insurance rates?

As we all know, the world is divided between those who take a rosy, glass-half-full view of events and those who squint at the glass and gloomily come to a more Eeyorish interpretation.

Berenberg expects 1.4 renewal outcomes have been “largely in line” with expectations

European reinsurance combined ratios will improve by at least 1 percent during 2021 as market hardening continues, according to Berenberg analysts, with terms and conditions also continuing to tighten.

Willis Re: Cat bond momentum continues with $2.8bn of Q1 issuance

The catastrophe bond market has built on the momentum it generated in Q4 2020 with $2.8bn of issuance seen in the first quarter this year amid significant demand for the product, according to Willis Re.

Willis Re: Cyber reinsurance rates up 25-40% at 1 April

Although 1 April is not a major renewal date for the wider casualty reinsurance market, global cyber rates for excess of loss treaties with loss emergence priced up by as much as 40 percent, according to Willis Re.

Willis Re: 1.4 Japan wind up 5-20% as per risk and agg covers restructure

International property reinsurance renewals at 1 April followed a pattern set at 1.1, as adequate capacity across the board and orderly negotiations over exclusionary language contributed to headline Japanese pricing that was broadly in line with expectations for wind and flood.

TWIA to place $1.9bn of reinsurance and consider additional $1bn layer

The board of the Texas Windstorm Insurance Association (TWIA) has directed its staff and Guy Carpenter to place a combination of catastrophe bonds and traditional reinsurance totalling $1.9bn to meet its funding requirement for the 2021 hurricane season.

CCR Re posts 103.2% CR; sees double-digit revenue growth at 1.1

French state-owned reinsurer CCR Re said it enjoyed overall premium growth of 12 percent at the key 1 January renewals, with the expansion coming almost entirely from its P&C operations.

Europe’s big four reinsurers grow 1.1 premiums close to €30bn in 2021

Total P&C reinsurance premiums written by Europe’s “big four” reinsurers at the 1 January renewal grew to more than €29.9bn in 2021, according to analysis by The Insurer.

Cali FAIR Plan program gets home despite reinsurers’ wildfire concerns

The California FAIR Plan and its broker Aon have successfully completed the placement of a restructured cat reinsurance program with a new $75mn xs $125mn occurrence sub-layer and added a $250mn occurrence layer at the top despite a challenging market for securing capacity for wildfire risk, The Insurer can reveal.

Munich Re shifts casualty focus away from XoL at 1.1

Munich Re cut its exposure to casualty excess of loss treaties at the 1 January renewals as the German reinsurer continues to take “decisive action” to mitigate high litigation and increasing social inflation trends in its US casualty book.

Texas winter storm a “significant” insurance event: Munich Re

Munich Re expects the winter storm that hit Texas and other US states to be a major loss event for the insurance industry and has maintained its previous “low three-digit-million euro” loss range for the Beirut port explosion in August last year.

Pool Re confirms record £2.475bn limit at XoL treaty renewal

Pool Re has confirmed the placement of its three-year excess of loss retrocession programme which has seen its limit rise to a record high £2.475bn ($3.461bn), as revealed by The Insurer earlier this week.

Casualty leads the way as Liberty GRS posts 15% average renewal rate rises in 2020

Alleghany reports improved Q4 CR and points to encouraging 1.1 for TransRe

Alleghany reported improved underwriting results across all three of its main operating units in Q4 despite $76mn of additional pandemic losses at TransRe, as it also highlighted a successful 1 January renewal for the reinsurer that included material growth in US casualty and specialty business.

Pool Re upsizes XoL treaty to new record size of £2.475bn as start-ups Inigo and Vantage join panel

UK terrorism mutual Pool Re will once again extend the limit on its XoL programme to a new high of £2.475bn ($3.461bn) when the 1 March treaty formally renews next week.

CEOs confident US rates will continue to outpace loss costs

An analysis of US commercial insurance feedback provided by management in earnings releases and on investor calls reveals rate increases continue to accelerate for most, with pricing drivers such as social inflation and the low interest environment expected to persist throughout 2021.

North American rate momentum set to temper in H2 2021: Aon

Pricing in North America’s insurance market is close to peaking, with the rampant increases seen in recent years expected to temper in the second half of 2021 despite capacity constraints remaining “a serious concern” in certain segments, according to Aon.

A year’s pause for the IG

Tomorrow – 20 February – is a well-known date in the marine (re)insurance calendar for two reasons.

IG facing another UW loss year with price rises needed: AM Best

After being hit with a record number of pool claims during the first six months of the 2020/21 policy period, the 13 mutual P&I insurers of the International Group are collectively staring at an underwriting loss for the fourth consecutive year and “pricing improvements are needed”, according to AM Best.

Axis sees 18% insurance rate hike in Q4; pricing momentum to continue into 2021

Axis Capital has reported a 15 percent uplift in average insurance rates across 2020 – with rates up 18 percent in the fourth quarter – as pricing momentum continues to accelerate across its core lines.