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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Trapped ILS capital falls slightly, overall reinsurance capital rises: Hyperion X

The amount of insurance-linked securities (ILS) capital and collateral that is still trapped after recent catastrophe loss years has fallen only slightly, as some cat bond collateral in particular was released but fresh collateralised reinsurance and retro collateral was trapped by 2019 loss events.At the same time, overall global reinsurance read the full article →

Cat bond rates gain 2% in Q4, hard market continues: Lane Financial

Catastrophe bond and ILS rates-on-line, as measured by a synthetic Index calculated by Lane Financial, rose 2% in the final quarter of 2019, as insurance-linked securities (ILS) remained in hard market territory and yields returned to levels seen earlier in the year.The latest data from consultancy Lane Financial LLC's synthetic read the full article →

P&C profit pressure, Jan renewal outcome to drive reinsurance rates: KBW

While major global catastrophe loss activity in the fourth-quarter wasn't particularly significant, attrition from global large losses and Japanese typhoons, as well as dented profitability in general, plus the outcome of January renewals, is all expected to help drive reinsurance rates higher through 2020.Analysts from KBW noted that overall loss read the full article →

Florida market strains may drive reinsurance & private debt demand

The Florida insurance market is in a state of flux, as strains from recent years have begun to drive ratings assessments and a situation where capitalisation is key, leading to a number of carrier disposals and a likelihood that both reinsurance capital and private debt will become more in-demand.Rating specialist read the full article →

“Significant” reinsurance rate increases likely for Florida and Japan: S&P

The market could achieve "significant" reinsurance rate increases at the upcoming Japanese renewals in April and Florida renewals in June, as these two markets face some level of re-pricing on the back of catastrophes and market issues, according to S&P.The Florida market in particular is "facing a dislocation, which could read the full article →

Trapped ILS capital & lack of retro not as big a renewal issue as expected

As the January 2020 reinsurance renewals fast approached the two issues of trapped ILS capital and dented retrocessional capacity proved not to be as big or impactful as anticipated, with the market still managing to clear, partly thanks to the increased appetite and re-entry of large traditional players.The January 2020 read the full article →

Reinsurance costs a “financial shock”, Demotech warns of Florida downgrades

Demotech, Inc. has issued a warning that some Florida insurance carriers are facing serious challenges, with a number expected to be downgraded, while others could enter run-off if they cannot successfully negotiate a way forwards or attract the necessary capital.The change in the cost of catastrophe reinsurance in the last read the full article →

United (UPC) renews collateralized aggregate reinsurance, adds to other perils cover

Florida headquartered, expansive primary insurer United Insurance Holdings (UPC Insurance) has renewed a range of its reinsurance covers for aggregate, attritional and other natural perils.At the January renewals, the insurer renewed its aggregate excess of loss reinsurance, which covers frequency events for the company, as well as its all other read the full article →

ILS fund participation in European reinsurance renewal shrinks again

Insurance-linked securities (ILS) fund participation in the reinsurance renewals for continental European countries was particularly low in January 2020, as the low levels of pricing seen proved challenging for ILS strategies yet again.For a number of years now the continental European reinsurance renewals have seen ILS fund managers and other read the full article →

Losses in 2020 could signal return of opportunistic capital: Speakers

Another year of large catastrophe losses in 2020 could signal the return of opportunistic capital to the insurance-linked securities (ILS) market, as short-term investors look to exploit a hardening rate environment.This is according to industry experts speaking at the ILS Bermuda Beyond Convergence event in London this week, who discussed read the full article →