property catastrophe

Bermuda-based Everest Group’s Q4 2023 results show that the re/insurer continued to expand in property catastrophe risks in the hard market environment, with the firm highlighting a successful January 1 renewals in which it was able to fully deploy remaining capital raised in the second quarter.

The property catastrophe reinsurance market saw a “more consistent trading rhythm” at the 1/1 2024 renewals, but still some clients have been left holding more volatility, according to Guy Carpenter CEO Dean Klisura.

Property catastrophe reinsurance rates-on-line slowed their trajectory significant at the January 2024 renewals, but in the United States while the slow-down was a little more severe than some other regions, US property cat reinsurance rates are now a stunning 116% up since 2017, according to Guy Carpenter’s Index.

Equity analysts at Goldman Sachs are expecting a meaningful slow-down in property catastrophe reinsurance pricing through 2024 and perhaps beyond, but at least for the year ahead, they are not anticipating any meaningful decline.

Including the latest reinsurance renewals data from January 1st 2024, global property catastrophe reinsurance rates are now up by an estimated 76% since 2017, according to Guy Carpenter’s widely cited Index.

Property catastrophe reinsurance renewals saw another wide range of outcomes even in a more orderly market, as capacity providers still demanded steep increases for programs that had been loss-affected during the last year, with global property cat rates seen as ranging from flat to up by 30%.

Recent results from major Italian primary insurance companies have clearly evidenced that reinsurance terms, conditions and higher attachments are driving higher retention of catastrophe losses, eroding insurer performance, Fitch Ratings has highlighted.

Property catastrophe reinsurance capacity is expected to remain relatively flat at the January 2024 renewals according to a survey from broker Gallagher Re, which also suggests that reinsurer appetite for writing aggregate coverage and lower-layers remains limited.

Aspen Insurance Holdings has announced a senior hire, bringing onboard Tim Mardon as Global Head of Property Catastrophe Reinsurance and Chief Underwriting Officer (CUO) of Aspen Bermuda, joining the firm from his most recent position at SiriusPoint.

Rating agency AM Best has noted that there are signs of increasing appetite for property catastrophe reinsurance, saying that capacity to service that part of the market may be close to a “positive inflection point.”