Property treaty
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Francine has been the eighth Category 2 or larger storm to make landfall in Louisiana since 2000.
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A roundup of the breaking news, C-suite interviews and exclusive insights.
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‘Life-threatening’ storm surge and hurricane-force winds expected for the state, according to the NHC.
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Pricing expectations are still not aligned on higher-risk coverage options.
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The estimate from the Perils-owned company does not include any losses from Hurricane Debby.
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Flooding from the remnants of Hurricane Debby has taken carriers by surprise.
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A hurricane watch is now in effect for the Louisiana coastline.
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The carrier said European cat business needs further price improvement.
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Some Canadian cedants have approached the market for top-up cover.
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CEO Thierry Léger claims the “insurability” of global risk is becoming “challenged”.
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Reinsurers are high on their ‘redemption arc’. The question is – how long will it last?
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The US carrier abandoned the project due to high price expectations.
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In its first six weeks, Taurus has brokered more than £100mn of UK real estate.
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Severe thunderstorms, mainly in the US, accounted for 70% of insured losses globally.
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Everest Re bucked a more general trend to keep cat exposure stable.
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The rise is equal to 5%-10% of catastrophe capacity purchased, including cat bonds, depending on region.
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The property market remains “one of the most favourable... I've seen in my career", he said.
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The underwriter moves to the position from his current role leading property D&F.
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The biggest losses were from wind damage after the storm’s Texas landfall.
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Accounts with poor performance records are expected to see flat to 20% rate increases for cat coverage, according to Floridian broker Brown & Brown’s Q3 Market Trends report.
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Insurers' losses will likely be low and readily absorbed by their earnings.
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The flattish outcome comes after a larger year-on-year hike in January.
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The cost of the FY25 program is expected to be broadly in line with FY24 for the carrier.
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Grenada and St Vincent were spared the full brunt of the storm.
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The broker said another strong year would drive pressure for “reasonably significant rate reductions” next year.
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Mid-sized 2023-24 cat losses versus ready capacity held the market in equilibrium.
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Reinsurance sources say the pool targets the wrong aspects of Australian cat losses.
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Ex Ascot colleagues Gavin Wall, Chris McGill, Matthew Eve and Parth Patel are reuniting at the new unit.
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SCS caused global insured losses worth at least $8bn in the first quarter of 2024.
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Reinsurers “weren’t getting paid” before 2023’s hardening, the Lloyd’s executive argued.
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Reinsurers are much better placed to absorb cat losses; insurers are carrying more risk.
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The Florida portion of the program provides $1bn in protection.
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The Howden-owned MGA lost ~$250mn in cat capacity in September.
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Additional capacity for upper-layer coverage is driving rate reductions, the broker said.
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Forecasters have warned that a number of meteorological factors could make this year the most active on record.
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The outlook calls for an 85% chance of an above-normal season.
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Approximately 1.2 million units are vacant throughout the state.
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Insurers in the emirate typically buy low-attaching reinsurance.
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The recent Italian hail and Bernd losses show some companies are relying on outdated models.
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Tropical Storm Risk (TSR) has updated its forecast for North Atlantic hurricane activity, predicting a "hyper-active season" in 2024, with activity being around 70% above the 1991-2020 climate norm.
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The new CEO needs to fix the underwriting, but should also ask the bigger questions.
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The announcement confirms earlier reports from this publication.
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Joe Morrello joined the firm in 2022 after serving as E&S property head at Beazley.
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Oversupply of capacity will outweigh casualty and per-risk concerns.
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Last summer’s hail loss has crept significantly for many Italian cedants.
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Competition among insurers is rising as new carriers enter the market.
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The underwriter will report to Kristina Maffit.
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Syndicate 609 will focus on deploying capacity in D&F and specialty.
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Mutual Zenkyoren is expected to reduce its purchase this year.
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Exposures to property are growing materially in the riskier geographies.
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The Australian carrier has a full-year natural peril budget of A$1.09bn.
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The depth of the retro market recovery will be an influential factor in the pace of the cat market slowdown from here.
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The segment has bounced back from its mid-2022 nadir, but its current zenith is not that much to shout home about.
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The LatAm telecoms company buys a sizeable protection triggered by windspeeds.
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Insurance competition remains vibrant in some of the segments that remain most exposed to persistent risks highlighted by the flagship World Economic Forum report.
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The carrier also signed down some Lloyd’s players due to differential pricing.
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The flight of reinsurers to mid- and upper layers of programmes is influenced by recent experience but softening at this level can be seen as a risky move.
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The broker’s report also hailed the best risk-adjusted margins for ILS investors in a decade.
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Reinsurers are looking to grow in top-layer cat risk, resulting in “variable” outcomes on sign-downs.
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The primary insurance subsidiary buys around EUR700mn of property cat protection from the wider market.
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Property cat and casualty pricing remain steady following chaotic 2023 renewal, with global cat rates rising 3%.
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Some reinsurers could be heading into 2024 with spare capacity, the reinsurance leader said.
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The broker said over-placement on some deals was a positive sign for brokers, though reinsurance capacity is still very tight in some areas.
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Travelers is set to expand its core cat treaty by between $1bn and $1.5bn, in a further sign of increased demand for cat reinsurance coverage at 1 January, this publication can reveal.
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We look at data trends that shed light on the past year, ranging from growth plans at Lloyd’s to personnel planning, uncertain IPO prospects and the unexpected trends from Florida losses.
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Next year will see North Atlantic hurricane activity about 30% above the 1991-2020 30-year norm, according to Tropical Storm Risk.
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Anticipations of a tug-of-war around a ‘flat to slightly up’ pricing renewal have indeed come to fruition.
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The programme was hit hard by February’s Kahramanmaraş earthquake.
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The P&C Re CEO discussed Swiss Re’s P&C appetite and nat cat exposure in the investor presentation.
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The ratings agency said premium rate increases for specialty lines would be most pronounced in political risk, terrorism and political violence lines because of heightened geopolitical tensions.
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The pool was launched in July 2022 and is backed by a A$10bn government guarantee.
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He joins from Allianz commercial where he currently holds the role of senior property underwriter.
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The mood at the association’s annual meeting is vastly more congenial this year, but challenges remain, particularly around long-tail lines.
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Barrett was previously senior vice president, P&C specialties at Lockton.
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Up-to-date building codes could reduce the amount insurers pay in the Caribbean by 18%, according to the risk modeller.
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With US third-quarter reporting season being well underway, the results so far highlight further runway for the hard property E&S market.
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Videos and messages posted to social media show widespread devastation caused by the Category 5 hurricane.
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Flights had been suspended into Acapulco after the storm rapidly intensified and made landfall at Category 5 strength.
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Executives said geopolitical uncertainty, economic stagnation, cyber, cat events and inflation will drive demand on the Continent.
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The carrier continued to experience a significant level of catastrophe losses this year, which resulted in lower year-to-date earnings than expected, according to CFO Frey.
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The reinsurer said hardening of property reinsurance conditions must continue.
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During the first nine months of 2023, a total of 24 separate billion-dollar weather and climate disasters have been confirmed by the NOAA’s National Centers for Environmental Information.
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Loss severity and prior-year development in US casualty dominated discussion at The Broadmoor.
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Chris Prior of Inigo Insurance will also be joining Wood at the carrier, marking a re-entry into property D&F for Syndicate 1200.
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Lloyd's chief of markets Patrick Tiernan said the Corporation is comfortable that a cyber risk pre-mortem exercise showed the market could cope with a major cyber incident.
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The capacity supported the cat book and represents upwards of two-thirds of the total book.
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The psychological wounds of the past were serious, and the sector’s redemption arc with capital will take time to play out.
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Insurance Insider has compiled a bite-sized wrap-up of the exclusive news stories and CEO interviews from this year's Monte Carlo Rendez-Vous.
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The paradox of “the best reinsurance market in years” is that there are still question marks over who wants a piece of it.
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Sources have said the layer will provide the carrier with protection for the Northeast US only and attaches at a remote level.
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The French reinsurer said continued price increases, particularly on cat and US casualty, remain necessary.
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Some 15 months on from the property reinsurance exit, he said the firm continued to reserve the right to reshape the portfolio.
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Despite a successful upstreaming of cat risk to primary insurers, reinsurers still have multiple factors to worry about in the run-up to 1 January 2024.
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The pressure on catastrophe terms and conditions seen at the January 2023 renewals will likely not be repeated as renewals get more orderly in 2024.
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In May, S&P Global Ratings estimated that its proposed new criteria for its insurer ratings methodology will lead to rating actions on up to 10% of rated carriers, but Litmus Analysis has stated that it expects that this estimate is not intended to represent the upper limit of possible rating changes.
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Karen Clark & Company said the majority of insured losses will incur from US wind and storm surge damage, apart from just under $5mn which was attributed to winds across the Caribbean.
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Super Typhoon Saola has the potential to be one of the five largest typhoons to land in Guangdong in over 70 years, according to reports.
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Hurricane Idalia is still live, but the storm’s track reassured market participants that it will be a relatively minor loss, although one potential wild card is the damage it will cause to Georgia and South Carolina.
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The update projections for wind only show a 20% likelihood of losses approaching $11.7bn.
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If the storm steers clear of Tampa, reinsurers will be well placed for minimal losses, but a retention loss is a further blow for weak Floridians.
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The storm is now forecast to become a major hurricane by Tuesday night. This morning’s advisory update had estimated that Idalia would reach major hurricane status by early Wednesday.
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A major hurricane in any section of Florida that extends into the Southeast states is likely a “multi-billion-dollar” insurance industry event, according to the broker.
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The estimate includes privately insured damage to residential, commercial and industrial property, as well as automobiles. Boats, offshore properties and NFIP losses were excluded.
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Idalia is forecast to become a hurricane later today and a dangerous major hurricane over the northeastern Gulf of Mexico by early Wednesday.
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The estimate is based on the impact to approximately 200 structures where RLI provided primarily homeowners’ insurance.
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However minor an irritant these losses are for global carriers, their impact is likely to have an outsized influence on the narrative heading into the 1 January renewals.
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Earlier this afternoon, San Diego County issued a tropical storm warning related to Hilary – the first in its history.
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The development in reconstruction costs and contingent BI claims may put the ultimate sum beyond current estimates.
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The carrier was originally in the market for extra capacity at January 1 before pulling plans.
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Most forecasters now predict above-average storm activity for the Atlantic as a result of record-high sea-surface temperatures.
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Tens of thousands of people have been evacuated from the island, and nearly 14,000 Maui residents remain without power.
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The hammering of hailstorm losses that US homeowners’ carriers reported for H1 will drive positive change in property markets.
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The CEO also addressed the carrier’s MGA strategy and the impact of the abandoned take-private attempt.
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The carrier said a greater number than usual of North Atlantic storms are possible despite El Niño conditions.
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The CEO said Chubb has ‘never seen better pricing’ on primary property.
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The reinsurer said it was monitoring conditions in the property E&S markets, where it has been reducing capacity to grow in property treaty, as rate gains could provide fertile ground for future growth.
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The first quarter of 2023 has already gone down as the costliest on record for the peril in the US.
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Insurance Insider has gathered data on geographical areas prone to cat events, which are outside of southeastern US states, that keep weather experts awake at night.
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With SRCC losses on the rise in recent years, the French riots have thrown a light once more on the dislocation within the political violence market.
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The utility previously bought a $1bn policy from the (re)insurance market.
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The Dutch carrier will remain active in life risks and reinsuring its parent Achmea.
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The Australian carrier has also renewed a five-year whole-account quota share with Hannover Re.
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Loss-free accounts were generally up 20%-50% at renewal, the reinsurance broker said.
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The Australia and New Zealand carrier faced additional costs of A$250mn to renew its programme for the new fiscal year.
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The broker’s latest report finds stability but continued price discipline in most lines and regions.
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The carrier is increasing underlying rates to counter increased reinsurance costs and inflation.
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The executive first joined Vantage in 2021 after stints at Hamilton and Allied World.
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The collapse of the Net-Zero Insurance Alliance means insurers must find new neutral ground to continue ESG engagement, CEOs at the Geneva Association's General Assembly said.
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Plus the latest executive moves and all the top news of the week.
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Some cedants paid more than 40% increases depending on Florida concentration and Hurricane Ian losses.
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Most forecasters predict below-average activity in the region – but opposing weather phenomena mean uncertainty is higher than usual.
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The US National Oceanic and Atmospheric Administration (NOAA) has forecast “near normal" hurricane activity in the Atlantic this year.
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The New Zealand carrier has topped up its cat programme to maintain a NZ$889mn limit.
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Early private deals have provided far more stability in this year’s renewal than last.
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Most carriers were keen to talk about how they are taking on the ongoing hard market in Q1, but some complexities partly offset their good news.
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Reinsurers are starting to see increased demand from personal lines, where valuations are being updated to match inflation.
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Blenheim’s withdrawal from property treaty highlights questions around London’s role as a reinsurance centre of excellence.
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Softening cat bond rates are among the bearish signals for cat rates, but latent new demand and still-cautious supply should prolong reinsurer gains.
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The syndicate wrote £386.2mn in gross written premium overall, of which £116mn was property treaty in 2022.
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The global P&C CEO said the carrier will deploy roughly the same capacity in the state as last year.
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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.
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The ratings agency repeated its expectation that 10% of ratings in the (re)insurance sector will be affected by its new criteria.
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Mark Cloutier set out Aspen’s plans for top-line 2023 growth in the range of 10%, and a continued strategy of pursuing rate rather than exposure growth in property cat.
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The forecast included two intense hurricanes, six hurricanes and 12 tropical storms.
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Aon said it was “optimistic” that the market is now on a more stable footing following a turbulent 1.1.
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Reinsurers achieved an average ROE for 2022 of 5.2% – far below the cost of capital – in what Aon described as a “poor year for reinsurance sector earnings”.
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The broker’s international chairman said that without an influx of new capacity, the market will remain disciplined.
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S&P plans to publish a capital model prototype with its revised proposals for ratings methodologies, in its latest move to seek market feedback.
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Sources pointed to increased pressure to lift minimum rates on line above 2.5% on upper layers of wind programmes.
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S&P published its first consultation on proposed changes to its risk-based capital adequacy methodology in December 2021.
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Large visiting contingents from Florida to the Bermuda Risk Summit highlighted ongoing concerns around cat capacity availability.
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The MGA’s international platform hopes to bring in MGA underwriters looking for US expansion.
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The executive didn’t provide a target for the number of investments it expects to keep, but said SiriusPoint will not be an active acquirer in the near term.
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Global P&C insurers must reassert their relevance by reducing cat-related protection gaps rather than retreat from nat cat risk, McKinsey said.
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