Hannover Re
-
Across its three core retro deals, the carrier renewed EUR1.17bn, down 3% from EUR1.21bn in 2020. -
The fourth-quarter charge will take group full-year pandemic losses to EUR1.2bn.
-
The latest issuances take the 2021 Seaside Re bonds to $136mn in total, down 10% from last year.
-
The new limit amounts to roughly half the Seaside Re bonds placed last year.
-
Suncorp, IAG and QBE reinsurers could face significant recoveries after a landmark court ruling.
-
The carrier increases its appetite for catastrophe risk ahead of “substantial” rate increases at 1 January.
-
The reinsurer passed lower natural catastrophe losses to retro partners than in Q3 2019, but Covid ceded losses rose to EUR173mn.
-
The carrier says higher retro renewal costs will act as a counterweight to rising rates.
-
Hannover Re's K sidecar includes exposure to the aviation market, but overall ILS participation in such risks is limited.
-
The reinsurers point to falling interest rates and loss experience as the basis for further hardening.
-
Lower capacity will have an effect, but the company hopes to avoid severe retro rate rises.
-
CEO Michael Pickel says Covid-19-related losses and the low interest rate environment have made price increases “absolutely essential”.
