Renewals

The cat bond market is thought likely to receive an outsized portion of any capital inflows.

CEO Locke Burt said Florida reforms would be “transformational” and that investors had become more receptive to cat risk owing to higher rates.

The US mutual cut back its 1.1 reinsurance program, according to sources.

The ILS manager’s analysis highlighted that Lloyd’s nat cat exposure had lowered over the six years to 2021.

The carrier has upped its global all-perils cat coverage to $1.2bn since January last year.

The capital management platform remains active but January renewals were fronted by the balance sheet.

The reinsurer noted “buoyant” conditions in the cat bond and private reinsurance segments.

The carrier has increased its retro capacity by 56% to EUR1.34bn.

The carrier said it achieved average risk-adjusted price increases of 30% on cat business.

The organisation is preparing its reinsurance placement based on the increased exposure numbers.

Rate increases achieved at 1 January will help carriers keep pace with inflation, the agency said.

The carrier has renewed two of its quota shares with continental reinsurers with final negotiations underway.

The broker said the renewal had been “gruelling” for cedants.

The European cat market is hardening faster than expected but the process is being delayed by ongoing negotiations over retro protection and varying lists of reinsurer demands to improve terms.

The syndicate’s growth headroom is somewhat constrained compared to the Lloyd’s market average.

Expansion is set to be a trend across Lloyd’s as syndicates look to capitalise on a hardening market.

The ILS broking leader was speaking at the first in-person Munich Re ILS roundtable at the Monte Carlo Rendez-Vous since the pandemic.

The price for risk carrying is no longer insufficient, Munich Re's CEO said in a Monte Carlo briefing.

Moody’s, S&P and Fitch all see current conditions as potentially allowing for ILS growth.

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.