insurance

In discussing their third-quarter 2022 results, senior executives of US primary insurance giant Travelers disclosed that the company has now accumulated $1.4 billion of qualifying catastrophe losses towards its $2 billion aggregate excess-of-loss reinsurance attachment point.

US primary insurance giant Travelers has reported its third-quarter results, revealing $512 million of pre-tax and net of reinsurance catastrophe losses for the period, largely from hurricanes Ian, Fiona and some US severe storms, but still the carrier has kept its consolidated combined ratio profitable, at 98.2%.

Bermuda headquartered insurance and reinsurance firm Arch Capital Group has pre-announced its expected losses from the third-quarter of 2022, including recent major hurricane Ian, saying it anticipates pre-tax net catastrophe losses of $530 million to $560 million.

Australia has been flooding again in the last week, as storms and torrential rain hit parts of the south east of the country and this episode has now been designated an insurance catastrophe, while rating agency S&P said so far the claims from it shouldn’t trouble reinsurance capital.

Globally, catastrophe losses that fall to the insurance and reinsurance industry are already near $100 billion, according to analysis from broker Aon, which estimates the total at $99 billion so far, including an amount for hurricane Ian.

Florida’s domestic property insurance carriers, as well as those coastal focused US catastrophe exposed property specialist carriers, are facing a far more challenging reinsurance renewal environment in 2023, Moody’s Investors Service has explained.

The world has a “vibrant wholesale risk market”, spanning insurance, reinsurance and insurance-linked securities (ILS), but it’s time to go back to basics, industry expert speakers explained at Convergence 2022 in Bermuda last week.

K2 International, the London-based specialist MGA, is out raising capital for additional reinsurance and possibly US retrocession & ILW underwriting in 2023.

If they aren’t properly compensated for taking catastrophe losses, investors in catastrophe bonds and other insurance-linked securities (ILS) are likely to look elsewhere for returns, Fitch Ratings has warned.

Reinsurance capacity for lower-layers of Florida focused towers is expected to become very limited in 2023, while renewal rates are likely to rise above expectations, according to Citizens Property Insurance Corporation CEO Barry Gilway.