-
Twia needed to purchase $3.35bn of reinsurance to satisfy its $6.5bn 1-in-100 PML.
-
The expected spend is around 33% higher than Twia had budgeted.
-
The suggested update to the PML is $2bn higher than last year.
-
The carrier also set out detail on its alternative solutions offering.
-
European rates on line increased by 7.60%, while in the US prices were up 5.25%.
-
The $7bn initial attachment point has remained unchanged from last year.
-
Of $17bn that entered the market in the 15 months to 31 December, 40% was channelled into ILS vehicles.
-
CFO William McDonnell said reinsurance market stabilisation in 2023 allowed the firm to buy more protection than expected.
-
The broker’s report also hailed the best risk-adjusted margins for ILS investors in a decade.
-
The broker’s 1st View report predicted that cat bond issuance should remain elevated until at least Q2 2024.
-
Projected 2024 ILS returns remain historically high, but signs of increased appetite for top-layer cat risk and top-end retro raise questions over how long this will last.
-
The TWIA board has fired the starting gun on the process to place its reinsurance programme incepting June 2024.
-
The P&C Re CEO discussed Swiss Re’s P&C appetite and nat cat exposure in the investor presentation.
-
The ILS sector grew in the context of 0% interest rates historically.
-
Demand is expected to boost the ILS market growth.
-
The firm’s 1st View report on the July renewals also flagged that an oversupply of ILW capacity may bring down attachment points relative to early 2023.
-
The broker estimated global reinsurance capital rose by $30bn over the first quarter, with a 7% uplift in alternative capital and a 5% recovery to traditional equity.
-
The organisation bought $1.4bn of reinsurance at 1 April.
-
This year’s program – sealed with a panel of 78 reinsurers – includes $875mn of multi-year ILS capacity providing diversifying collateralized reinsurance capital.
-
The pace of rate hikes will ease back from the 1 January reset as buyers seek to lock up capacity early after last year’s dislocated renewal.
-
Aon expects depleted shareholder equity to be restored over time via higher retained earnings and the ‘pull-to-par’ effect of bonds approaching maturity.
-
Cat bond pricing has fallen by about 12% since year-end but margins are still strong enough that the market could be set for meaningful growth, the broker forecast.
-
The real test for cat capacity will come at the mid-year point, according to Gallagher Re.
-
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.
-
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.
-
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.
-
Total spending was up 2% as the Floridian carrier cut back the limit it bought by 10%.
-
The organisation has $170mn less cover in place than the $2.1bn it had for the 2020 and 2019 hurricane seasons.
-
Last year it secured just NZ$6.2bn of protection from major nat cat events, as premium spending went up by 11%.
-
New and growing carriers helped to fill out treaties as Sompo stepped back from a market that came in flatter than expected for remote risk.
-
The carrier cut back its treaty limit by around 13% and lowered its deductible.
-
Divergence between appetite for upper and lower layer reinsurance risk may drive some panel turnover, and disadvantage some segments.
-
Berkshire, along with some other expansive reinsurers, grew its level of assumed reinsurance premium from top Florida insurers significantly in 2020, as the ILS market share dropped overall.
-
The company also procured approximately $180mn of incremental limit for earthquakes.
-
Pockets of the distressed Florida market are still expected to face a challenging renewal, but much of the remediation was carried out last year.
Most Recent
-
Appleby appoints Minors as corporate counsel
17 May 2024 -
Scor books Q1 P&C combined ratio of 87.1%
17 May 2024 -
Allstate pegs April pre-tax cat losses at $494mn
16 May 2024