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.
Even before hurricane Ian slammed into Florida, a cohort of reinsurance companies tracked by broker Aon were capital challenged this year, as financial market volatility and macroeconomics dented capital for the group.
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Reinsurance capacity for lower-layers of Florida focused towers is expected to become very limited in 2023, while renewal rates are likely to rise above expectations, according to Citizens Property Insurance Corporation CEO Barry Gilway.
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Analysis of catastrophe bond and insurance-linked securities (ILS) market pricing in the wake of hurricane Ian implies a significant hard market is ahead, with issuance multiples perhaps needing to rise by 20% to 30%, according to Lane Financial LLC.
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A capacity crunch in property catastrophe reinsurance is becoming “ever more likely” according to analysts at Peel Hunt, but importantly they highlight that even at the estimates for the level of industry losses it will cause, hurricane Ian should still fall within the sectors risk appetite.
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During a panel discussion at the ILS Bermuda Convergence 2022 event yesterday, Michael Millette told the audience that while the quantum of loss matters after hurricane Ian, with such a range of estimates, the risk is that cedents will all seek to trap capital as if the industry impact is going to be $70 billion […]
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According to the global insurance and reinsurance equities analyst team at Jefferies, the share price reaction to hurricane Ian has been more benign than expected, leading them to suspect investors are looking to the “substantial renewal pricing upside” that is now anticipated.
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There are likely to be some retrocession market wildcards in the wake of hurricane Ian at the next major set of reinsurance renewals on January 1st 2023, according to Moody’s Investors Service.
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Before hurricane Ian devastated western Florida, the U.S. Federal Emergency Management Agency (FEMA) had already begun the process towards a January 2023 renewal of the National Flood Insurance Program’s (NFIP) traditional reinsurance tower.
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Having listened to comments from Hannover Re at its investor day in London this week, analysts from JP Morgan said the reinsurance firm expects to have a relative advantage over some peers when it comes to securing retrocession at renewals, while Goldman Sachs analysts highlighted the reinsurers ability to tap alternative capital for retro.
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Insurance-linked securities (ILS) market sources had been forecasting a busy pipeline of catastrophe bond deals for the remainder of 2022 and into early 2023, but at the same time capital raising was not happening as quickly as some would like to have seen, leading to nerves about timing the market to source sufficient capacity and […]
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