property catastrophe

Despite writing more business at the April renewals this year, Berkshire Hathaway’s property catastrophe reinsurance book is “very unbalanced” according to Ajit Jain, with the giant insurance and reinsurance balance-sheet still significantly exposed to Florida hurricanes.

Analysts at investment bank Goldman Sachs have concluded that US property catastrophe reinsurance rate increases may fall above 50% at upcoming renewals, while other areas of the world are also likely to see some of the steepest increases in two decades.

The market for retrocessional reinsurance has been one of the most capital constrained and loss impacted over the last few months, which has resulted in an adjustment to priorities for those writing retro covers, while buyers are having to adapt to the demands of capital.

According to international broking group Howden, non-marine catastrophe retrocession rates-on-line for excess-of-loss coverage rose by an average of 15% at the key January 1st 2022 renewal season, outpacing property catastrophe treaty reinsurance rates-on-line by around 6%.

Alternative reinsurance capital levels in the global industry grew 3.7% over the course of 2021, outpacing the 2.7% growth of traditional reinsurance industry capital, according to the latest estimate from broker Guy Carpenter and rating agency AM Best.

Property catastrophe reinsurance rates and pricing rose by 10.8% year-on-year at the January 2022 reinsurance renewals, which broker Guy Carpenter explained saw a market that bifurcated between loss-affected and non-loss affected programs.

Property catastrophe reinsurance rates are expected to increase by double-digits in 2022, as reinsurers absorb and then react to the costs of more natural catastrophe loss events that are deemed linked to climate change, according to rating agency Fitch.

Insurance and reinsurance broking group BMS has successfully expanded its US property catastrophe reinsurance broking footprint, as its BMS Re division has now completed its acquisition of Trean Intermediaries.

Insurance and reinsurance broking group BMS is expanding its US property catastrophe reinsurance broking footprint, as its BMS Re division has acquired Trean Intermediaries.

This morning, global insurance company AXA has shown that business interruption impacts from the COVID-19 pandemic continue to be felt, with the company announcing a EUR 300 million settlement offer for French restaurants.