Reinsurance News

Equity analysts from investment bank Berenberg have said that, in recent meetings with investors the reinsurance sector has been a focus of their conversations, with investors particularly keen to gauge how much longer the hard reinsurance market can last.

The recent mediation between parties involved in the Vesttoo Chapter 11 bankruptcy proceedings has now been completed and a report from the mediator says that “several” settlement agreements have been reached, while negotiations are ongoing with other parties.

The California Earthquake Authority (CEA) is said to have stabilised its risk transfer and reinsurance program, while increasing its claims paying capacity to the 1-in-365-year return period, as of January 1st 2024, according to rating agency AM Best.

Australia has experienced more severe thunderstorms and damaging weather, with storms that impacted the Victoria region on Valentine’s Day being designated as a ‘Significant Event’ by the Insurance Council of Australia (ICA).

US specialty insurance group Assurant has secured more catastrophe reinsurance protection for the year ahead, while switching to an April 1st renewal, with $1.38 billion of limit already secured for its US cat tower by January.

QBE has revealed details of its reinsurance renewal alongside its results this morning, with significant changes evident as the main catastrophe excess-of-loss tower has shrunk, while the re/insurers aggregate reinsurance arrangement has been restructured.

Swiss Re’s specialist insurance-linked securities (ILS) and third-party reinsurance capital management division, Alternative Capital Partners (ACP), has reported a 68% increase to its fee income earned for the full-year 2023, reaching $195 million.

The insurance and reinsurance industry loss estimate for Cyclone Gabrielle’s impacts in New Zealand has now been finalised by PERILS AG, but not without a further almost 8% increase to the quantum of the insured losses, which now sits at NZ $2.174 billion.

Australian primary insurer IAG reported that its natural peril costs and catastrophe losses cost the company $521 million through the first-half of its fiscal year 2024, resulting in an erosion of $250 million of the deductible beneath its aggregate reinsurance cover.

Global reinsurance giant Swiss Re grew its natural catastrophe reinsurance premiums by 12% at the January 2024 renewals, while finding the nat cat business had the “most pronounced” rate increases of its 1/1 renewal book.