Monte Carlo Reinsurance Rendez-Vous news

At the Monte Carlo Rendez-vous today, Brian Schneider, Global Head of Reinsurance Ratings at Fitch Ratings seemed more bullish on the insurance-linked securities (ILS) market continuing its recent pace of growth, while traditional reinsurance capital is only forecast for “slight” growth this year.

Following a sharp surge in momentum across the insurance-linked securities (ILS) space in recent years, further success in the market hinges on maintaining underwriting discipline and a clear avoidance of past renewal mistakes, Luca Albertini, CEO of Leadenhall Capital Partners LLP, told Artemis in an interview.

The critical importance of underwriting discipline in reinsurance and insurance-linked securities (ILS) is laid bare in new analysis from PwC, with the company suggesting that remaining strict on terms, conditions and structures could be worth up to seven points of return on capital.

With the global economy having entered a capital expenditure (capex) super-cycle, there is a notable increase in investments being directed towards AI data centres. According to reinsurer Swiss Re, this could be a US$200 billion premium opportunity by 2030, within which alternative reinsurance capital, including catastrophe bonds and sidecars is expected to play a key […]

Broking giant Aon has today urged its insurer clients to leverage the record levels of reinsurance and third-party or insurance-linked securities capital as a growth-driver, saying creative use of capital and access to all its forms is increasingly important.

While the ongoing growth of the casualty sidecar market is bringing more third-party capital into long-duration risks, it is also creating a test for investor returns. Speaking this week, Fitch Ratings’ Senior Director, NA, Brian Schneider highlighted that as capital flows into the space, the additional supply is putting added pressure on casualty pricing.

The insurance-linked securities (ILS) market will see strong demand through the end of 2026 and into 2027, while the asset class is also likely to grow further with catastrophe bonds and sidecars key areas as cedents integrate ILS products into their reinsurance, according to Richard Pennay, CEO of Aon Securities.

Moody’s Ratings has maintained its stable outlook for the global reinsurance sector, even as pricing conditions continue to soften across the market, particularly in property cat lines. This reflects a decline in traditional reinsurers’ pricing power after three highly profitable years, compounded by growth of the insurance-linked securities (ILS) market.

Fitch Ratings has maintained its deteriorating outlook for the global reinsurance sector for 2027, which the agency says reflects operating conditions that are gradually weakening from still-sound levels. The agency also highlighted that while abundant capacity and rising claims costs will drive margin and revenue erosion, it will not be enough to materially affect the […]

A recent survey of protection buyers shows that the largest share of respondents agree that traditional reinsurance capacity is the key driver of price competition in the property marketplace, while the availability of alternative and insurance-linked securities capital is seen as a much less significant factor.