Reinsurance renewals news

It is hard to see anything other than further small price improvements for reinsurance cedents given the strong state of both traditional and alternative reinsurance markets at this time, Tom Wakefield, CEO of broker Gallagher Re has said.

Broking giant Aon has noted a buyers market for property catastrophe reinsurance at the April renewals, with flat to slightly down pricing and an environment where there has been a “dramatic shift” towards ample capacity, within which ILS market growth is a key factor.

After Florida Governor Ron DeSantis claimed on television that the states Citizens Property Insurance Corporation “is not solvent”, the CEO of the insurer of last resort has responded saying that Florida Citizens financial structure means it “will always be able to pay claims”.

Rating agency AM Best has explained that the expansion of named peril lists on reinsurance and retrocession arrangements at the January 2024 renewals, is not expected to make a material difference in terms of the risk covered.

The California Earthquake Authority (CEA) entered the January reinsurance renewals with almost one billion dollars more in risk transfer than a year earlier, as the group reached December 31st 2023 with $9.1 billion of protection in-force.

PGGM, the Dutch pension investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, ended 2023 with just over US $9 billion in ILS assets under management, as a slight uplift in capital deployed in euro terms and currency rates lifted AUM to a […]

The “step change” in property catastrophe reinsurance pricing, attachments and terms seen in 2023 has “broadly held” at the renewals so far in 2024 and analysts at KBW said that, in the industry, almost no-one expects these changes to reverse anytime soon.

According to a report from analysts at BMO Capital Markets, a prominent reinsurance broking executive from Howden Tiger said that property catastrophe pricing power is likely to fall by up to 10% at the upcoming mid-year reinsurance renewal season.

Universal Insurance Holdings, a Florida headquartered insurer that is a bellwether for signals of appetite for risk and use of reinsurance for those operating in the state, is aiming to expand its business in Florida once again, with its CEO citing much better conditions after the legislative reforms.

Having made recoveries under its aggregate reinsurance arrangement in 2023, US insurance giant Progressive has successfully renewed this important protection for 2024 and also purchased a new hurricane season specific reinsurance cover already, to run from June 1st.