Reinsurance renewals news

Reinsurance renewals news and articles. Discussing the trajectory of reinsurance pricing and rates, as well as the flow of reinsurance capital at key market renewal seasons where many reinsurance programs are renewed and new reinsurance and retrocession capital and capacity is deployed.

The reinsurance cycle follows a number of key renewal seasons and the news and analysis below covers these important reinsurance market renewals.

The key reinsurance renewal periods are at January 1st, April 1st, June 1st and July 1st.

The January renewals have a particular focus on European programs, Asia Pacific (ex. Japan), casualty and specialty risks. The mid-year reinsurance renewals see a particular focus on U.S. property catastrophe reinsurance renewals, with Florida a particular focus in June. Japanese reinsurance program renewals are a major focus at April 1st.

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ILS funds reserve for COVID BI exposure on some European cat programs

Some insurance-linked securities (ILS) funds that invest in collateralised reinsurance contracts have been setting reserves for potential exposure to business interruption losses due to the COVID-19 pandemic in a handful of the major European catastrophe reinsurance programs, we understand. We're told that these reserves have largely been set in October, with read the full article →

Rate rises + tighter terms + dislocation + quality cedes = higher ILS return potential

Insurance-linked securities (ILS) market return potential is on the rise and in some cases the portfolios constructed, or added to, at the January 1st 2021 reinsurance renewals, are going to offer significantly higher return potential to investors. The reasons for this are varied and the causes of the situation numerous. But read the full article →

Reinsurance could take brunt of COVID second wave losses: Barclays

Reinsurance capital could find itself on the hook for the largest share of COVID-19 losses from second waves of the virus sweeping Europe, with primary insurers largely happy with their loss-picks so far, analysts at Barclays have said. As Europe entered its second wave proper of the COVID-19 coronavirus pandemic in read the full article →

SCOR’s Atropos ILS fund AuM exceeds $1bn, SCOR IP and Coriolis $2.4bn

SCOR Investment Partners, the asset management company of the global reinsurance group SCOR, has continued to add new capital to one of its core insurance-linked securities (ILS) fund strategies, the Atropos, which has now exceeded the $1 billion mark in terms of assets under management. At the same time, SCOR Investment read the full article →

Hannover Re’s catastrophe retro program dominated by capital markets

Global reinsurance firm Hannover Re has the capital markets at the heart of its core catastrophe retrocession program, with investors supporting some 80% of its aggregate retro and 78% of its Cat XL coverage through K-Cessions. On the whole account side, the capital markets and insurance-linked securities (ILS) investors are a read the full article →

Multi-year hard market like 2001 possible in reinsurance: Jefferies

An aggregation of similar inflationary factors to those seen in 2001 means the reinsurance market may see a multi-year hard market, according to analysts at Jefferies. Jefferies analyst team believes that insurance and reinsurance companies are facing asset, liability and earnings related issues, which together could conspire to drive rates higher read the full article →

Allstate’s aggregate catastrophe losses rise on hurricanes Zeta & Delta

U.S. primary insurance giant Allstate continues to aggregate catastrophe losses at a faster rate in 2020, with its total reported pre-tax losses now having risen to almost $2.74 billion on the back of October's losses which were largely from hurricane activity during the month. Allstate reports that some 85% of its read the full article →

PE impact on rates unclear. Might see some decoupling at 1/1: Prospectus 2021

With just weeks left until the end of the year, it remains to be seen exactly how much private equity (PE) is raised and what impact this will have at the upcoming renewals, but the current environment suggests we might see some decoupling between traditional reinsurance and insurance-linked securities (ILS) read the full article →

Conduit Re gets preliminary A- rating as start-up plans progress

Conduit Re, the pure reinsurance start-up looking to raise $1.1 billion with a London Stock Exchange listing and launch in Bermuda, has had an early signal of approval from rating agency AM Best, which has given the company an all-important preliminary A- rating. Conduit Holdings and Conduit Reinsurance are being launched read the full article →

PCS’ Johansmeyer expects capital availability could be a major issue

The implications of the ongoing Covid-19 pandemic on the re/insurance market suggests that the availability of capital is going to be a major issue, according to Tom Johansmeyer, Head of PCS. Yesterday, Johansmeyer delivered a thought-provoking keynote to open the penultimate day of the annual re/insurance and insurance-linked securities (ILS) conference, read the full article →