Reinsurance renewals news

Global insurance and reinsurance player Everest Re ceded fewer premiums to its Mt. Logan Re Ltd. collateralized reinsurance sidecar-like vehicle in the second-quarter of 2020, although for the first-half cessions are still up by 13% compared to the prior year.

Rising reinsurance prices have growing momentum behind them, as the sector comes under increasing pressure from losses due to the Covid-19 pandemic, while at the same time capacity in the market has been constrained, according to Fitch Ratings.

In renewing its $2.1 billion reinsurance and catastrophe bond program for 2020, the Texas Windstorm Insurance Association (TWIA) paid some 19% more in terms of overall rate-on-line (ROL) compared to the prior year.

We’re hosting a live webcast on September 10th 2020, featuring senior reinsurance and insurance-linked securities (ILS) market executives discussing the state of play and the outlook for 2021.

RenaissanceRe, the Bermuda headquartered specialty re/insurer and third-party reinsurance capital manager, has raised capital across numerous platforms over the last year, but the company always ensures investors have a “right of incumbency” on the deals they are already on, according to its CEO.

AXA XL, the commercially focused insurance and reinsurance arm of the global AXA Group, has suffered a loss for the first-half of the year, as losses from the Covid-19 pandemic hit its commercial books of business.

Global reinsurance giant Munich Re turned a €579 million profit in the second-quarter of the year despite suffering around €700 million of losses from the Covid-19 pandemic during the period.

Reinsurance firm Hannover Re has more than doubled the size of its net reserve for losses from the Covid-19 pandemic, lifting it from €220 million at the end of Q1 to now €600 million for the first-half of 2020.

In a clear sign that the insurance and reinsurance market has moved beyond the “u-shape” that we saw earlier in the year, when primary and retrocession rates at either end were rising faster than reinsurance, now carriers are beginning to cite the harder reinsurance market as a reason to hike their front-end rates even further.

French insurance group Covéa and EXOR, the Agnelli family owned holding company investor, have struck an agreement to cooperate on reinsurance-linked investments going forward, finding a way to settle with each other over the failed PartnerRe sale.