Renewals

Succeeding years of nat-cat losses have left aggregate and lower-layer capacity tighter.

The deadline for Lighthouse Excalibur policy cancellations has been extended to 30 June.

Reinsurers secured concessions on terms and hiked rates as most insurers managed to patch together cover to enter hurricane season.

DE Shaw has been offering a form of “capacity wrap” to insurers in which its limit could be used to plug gaps throughout programmes, sources said.

The chunky deal comes as many reinsurers are heavily cutting their Florida cat books.

Some cedants remain far behind in a stressed renewal, but others are on the path to completion in a reshaped Florida market.

Proposed RAP coverage layer adds protection and exposures for insurers.

The Gallagher Re managing director of EMEA North and East said buyers need to be able to explain their stance on handling inflation, going beyond price to include action on their own underlying limits and deductibles, to get reinsurers on board.

The $500mn of new demand from Allstate highlights carrier need for cover after Ida, but pulling together cat capacity in the peak US market remains a tougher ask.

Scor said it had purchased the same retro limit as it had last year while managing “contained” price increases, as it cut back its catastrophe exposures.

RenaissanceRe had raised $470mn for the high-risk fund platform a year earlier.

The industry is expected to improve its return on capital slightly in 2022.