Reinsurance
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Tallahassee avoided a major hit – but flood and storm-surge losses remain unknown.
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The Corporation’s CUO said managing agents must ensure they manage the future differently to the past.
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Reinsurers will likely push for double-digit US premium rate increases.
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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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Legal trends, the primary pricing micro-cycle and other factors all play into an opaque outlook.
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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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Despite potential claims stretching into the billions, the events are not expected to shift the dial on pricing.
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Reinsurers are tightening their grip on certain specialty lines to make sure they remain profitable, say senior executives participating in our virtual roundtable.
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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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Negotiations are getting tougher, but overall market capacity is stable.
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The UK subsidiary of Carrick will acquire BMS International Insurance DAC and Seamair Insurance DAC.
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Future deal flow in the US could come from more adequately reserved liability lines.
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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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Renewals will depend on clients’ ability to differentiate themselves from broad-brush trends.
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“They want to grow their portfolios,” Guy Carpenter's CEO added.
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The take-private is expected to close by mid-2025.
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Hundle & Partners will provide capital support for the business, which will focus on acquiring corporate liabilities.
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Sources said the venture will look to service both US and European corporates and is backed by family office money.
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The US carrier abandoned the project due to high price expectations.
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The deal covered US and European P&C liabilities for Accelerant's 2020-2021 underwriting years.
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The James River-Long Tail Re deal is the latest example of deal-specific investor capital.
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In its first six weeks, Taurus has brokered more than £100mn of UK real estate.
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The new broking president added that hundreds of Marsh staff would not show up tomorrow at WTW.
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The legacy firm said the deal would strengthen its Bermuda operations.
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The transactions will de-risk all North America middle-market reserves up to 30 June 2024.
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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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This is Carrick’s second transaction this year and Insurance Insider understands it expects to complete others before year end.
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The firm escapes public market distractions and long-term undervaluation, but the low mark will hurt peer companies.
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The ratings agency said Sixth Street provides flexibility through long-dated capital.
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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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She will work on preparations for the take-private deal with Sixth Street before departing.
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The deal values the business just under its closing price on Friday, at 0.97x book value.
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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 executive replaces interim CEO Paul Brockman, who remains group COO.
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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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Acquirers are increasingly discerning around deals, according to a report.
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Insurers' losses will likely be low and readily absorbed by their earnings.
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This publication has reported several exits from the carrier’s Lloyd’s operation.
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The specialty treaty market is preparing to deal with the fallout from the Baltimore bridge disaster.
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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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Plus the latest people moves and all the top news of the week.
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Enstar will provide $430mn of excess cover over ~$1.7bn of underlying reserves.
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Some 39% of respondents expect deal volumes to increase in the next 12 months.
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The transaction is conditional to the completion of the sale of shares in Accredited to Onex.
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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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The liquidation will let the company sell its Accredited arm to Onex via an alternative transfer structure.
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SCS caused global insured losses worth at least $8bn in the first quarter of 2024.
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With topco liquidation looming, there are questions for R&Q and the wider market.
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Reinsurers “weren’t getting paid” before 2023’s hardening, the Lloyd’s executive argued.
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The Canadian PE house is delaying close and seeking to renegotiate aspects of the deal.
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The broker has more than 30 years’ experience in the London motor market.
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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 deal will see Darag manage open claims relating to the runoff of Unipol Re.
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The CEO also discussed the need for portfolio diversification.
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Major deals include a $1.3bn loss portfolio transfer with SiriusPoint.
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The Howden-owned MGA lost ~$250mn in cat capacity in September.
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Fears around social inflation have maintained upwards pressure on US liability reinsurance pricing.
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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 new hire will build a portfolio of niche liability classes.
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The outlook calls for an 85% chance of an above-normal season.
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The Lloyd’s chief of markets said he was generally comfortable with market fundamentals.
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The underwriter will head up casualty reinsurance for the US and elsewhere.
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The former R&Q head of legacy will join as an adviser.
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The bridge disaster added 6.3pts points to the company’s overall CoR in Q1.
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The vehicle will give the legacy carrier a US platform.
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Enstar recorded $280mn of other income in Q1 2023 related to Enhanzed Re.
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Love joins from Scor, where she was assistant vice president, insurance operations.
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The legacy deal comes one year after a $1.3bn LPT with Compre covering several lines.
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Approximately 1.2 million units are vacant throughout the state.
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The legacy carrier is to buy the captive from a “very large” multinational firm.
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Insurers in the emirate typically buy low-attaching reinsurance.
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The agreement from Fleming to honour original terms still leaves it open to long-term damage.
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Increasingly, deals are being brought to market but not transacted on.
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R&Q Legacy will book adverse development of ~23% of net reserves for the year.
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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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The market is shifting towards capital relief, with fewer, larger deals.
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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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He joins from Odyssey Re, where he was treaty underwriting VP.
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The underwriter will report to Kristina Maffit.
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The company is still working to get debt holder approval for the Accredited deal.
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Mitha joined Compre in 2022 as chief actuary, North America.
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Fleming has claimed breach of contract and is seeking roughly $78mn in “economic concessions”.
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The company reiterated its commitment to consummating the Accredited sale.
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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 Marco Capital company will target the captives market.
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Its PE owners have been exploring strategic options since May last year.
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The Australian carrier has a full-year natural peril budget of A$1.09bn.
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The carrier added casualty reserves of more than $500mn during Q4.
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The newly launched Marco Re will be led by Mark Elliott as CEO.
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The carrier said it has acted prudently on 2016-19 GL loss trends.
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Being underweight US casualty gives the firm more room than peers to manoeuvre.
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CEO Booth said there is “continued interest” in the NA captive market.
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The reinsurer took a harder line than peers on casualty treaty at the latest renewal.
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After rapid growth, can the ‘darling of European insurance’ maintain its lean style?
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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 transaction would have been one of the largest the market has seen for years.
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The executive joined the legacy carrier as CIO in 2020.
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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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As part of the transaction, Carrick will assume the company’s staff and operations.
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The LatAm telecoms company buys a sizeable protection triggered by windspeeds.
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In its first year under new ownership and after setting up its own managing agency in 2022, the Lloyd’s syndicate is looking at ways to leverage its infrastructure.
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R&Q is still dealing with a Bermudian regulatory review, personnel turnover and a transitioning business model.
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Just over half of votes cast were in favour of the $465mn sale to Onex.
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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 legacy carrier has acquired two portfolios of European casualty and motor liabilities from two separate insurance groups.
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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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Selling investor Zimmer said the deal was concluded at a premium to book value, but no numbers were disclosed.
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In the second part of our themes for 2024 outlook, we explore how fear of missing out in cat reinsurance is still contrasting with an upstreaming of risk that is creating fallout for primary insurers, while momentum in facilitisation and ESG continues.
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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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In the first section of our two-part outlook for 2024, we explore why macro-economic concerns are taking a step back, though casualty pricing micro-cycles highlight ongoing caution.
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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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The regulator has also paused the redemption of the company’s $20mn Tier 2 floating-rate subordinated notes.
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The lack of momentum reflects on a general belief that underlying casualty business is well-priced for current years.
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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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Former pricing actuary Chris Chandriotis will lead the team.
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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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Carriers have been dealing with elevated storm activity this year, whilst additional purchases to match inflating values had largely been parked in 2023.
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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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Variations between the casualty and cat markets mean 2024 cat outcomes may be far less uniform than they were this year.
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Sources previously told this publication there is up $15bn of exposure on-risk locally.
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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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The contingency market is monitoring the war between Israel and Hamas for potential loss activity, as well as keeping track on whether it has wider global implications for events, sources told this publication.
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Barrett was previously senior vice president, P&C specialties at Lockton.
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The R&Q share price has plummeted since the sale of the ~$1.8bn-premium fronting arm was announced 10 days ago.
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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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The revised status follows the recent announcement that R&Q Insurance Holdings has agreed a sale of its Accredited program.
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The bids received did not meet the seller’s reserve price, and it is likely to remarket the unit in two to three years.
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R&Q expects ongoing operating losses after the sale as transitions its legacy business to a fee-based model.
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Halfway through a complex restructuring is not the time for a CEO (and CFO) change.
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R&Q CEO William Spiegel will transfer to the Accredited program management business.
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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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The carrier reported an additional A$70mn reinsurance reinstatement because of higher claims.
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Darag’s German outfit completed the transaction to assume expired long-term liability insurance policies from the undisclosed captive.
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Loss severity and prior-year development in US casualty dominated discussion at The Broadmoor.
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Carriers achieved sweeping changes in pricing, terms and coverage in a hectic renewal at 1 January 2023, in a reset that sources hope isn’t reversed.
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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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The seller is facing an uphill struggle convincing its legacy rivals that there is strategic value in the merger deal.
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Syndicate 1856 is looking to back diversified coverholders for the project.
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Although the total deal values for 2022 and 2023 were almost identical, PwC noted that one-third fewer deals were announced in the more recent half-year period.
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Catalina put its Irish subsidiary up for sale in May as it looks to streamline operations.
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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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The insurer has been working to build a reputation for favorable reserve development after past sins.
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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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The broker has also expanded the role of recently appointed Matthew Hooker to leading Miller’s client engagement strategy.
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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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Earlier this week, this publication revealed that the firm parted ways with treaty VP and former TransRe executive Humberto Contasta.
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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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The transactions were written into Darag Bermuda and offer full legal finality for the US workers’ compensation book of the latter and the US workers’ comp and automotive liability books of the former.
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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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He will be responsible for driving the use of technology and data across the business.
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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 carrier has agreed to acquire the former Credit Suisse ILS unit, following the acquisition of sister company Humboldt Re in 2021.
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The Australian carrier has also renewed a five-year whole-account quota share with Hannover Re.
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Reinsurers are less worried about their property books compared to last year, and eyeing development of casualty loss costs due to social and macroeconomic inflation.
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Chaucer joins RSA, Liberty and Axa in the quota share arrangement.
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Loss-free accounts were generally up 20%-50% at renewal, the reinsurance broker said.
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This publication's legacy survey and roundtable suggest that while inflation and competitive pricing remain challenges, the opportunity is still strong in the run-off space.
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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 legacy carrier reported significant unrealised investment losses.
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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 CEO received $3.9mn in shares alongside his salary and bonus.
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In the wake of Enstar's $5.1bn go-private deal, here's our prior deep dive on the firm.
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