Renewals

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

The French reinsurer’s vehicle has renewed for the fourth consecutive year.

The Federal Emergency Management Agency trimmed its spend on the program by 12%.

Many private deals featured in final renewals negotiations as overall cat risk appetite was cut back, with some ILS segments hard-hit.

The shortage of sidecar capacity could have a knock-on impact to broader renewals.

Its reinsurance premiums ceded are expected to reach $207mn, up from $175mn a year earlier.

The retention was $80mn which will reduce to $55mn for second and third events.

Willis Re international chairman James Vickers said that the ILS market played a strong role in the Florida renewals, but it was becoming more difficult to judge the overall impact of the sector as more capacity stays behind rated balance sheets.

The broker said a buoyant ILS market contributed to the reinsurance market nearing a new equilibrium at the end of mid-year renewals.

The news marks the second year in a row members have ceded more than $1bn in risk to the Caribbean Catastrophe Risk Insurance Facility.