The insurer expanded its property catastrophe excess of loss (XoL) reinsurance programme ahead of its imminent acquisition of 1347 Property Insurance Holdings (PIH).
The board of governors approved the increase during a teleconference on Friday, noting that losses in personal lines accounts due to hurricanes have decreased its surplus.
The Florida-based carrier renewed aggregate reinsurance covering non-hurricane losses, including a $30mn single-provider deal and a larger $85mn programme.
There will be some small increases on loss-affected areas but next year is expected to be stable, USI said in its 2019 Commercial Property & Casualty Market Outlook.
The ILS market must focus on more disciplined underwriting as the reinsurance pricing cycle has been muted, according to Bobbi Anderson, principal and general counsel of Elementum Advisors.
Speaking at the Trading Risk Rendez-Vous in New York, Hudson Structured Capital Management’s Michael Millette said modelling misses helped the reload last year.
In a keynote address at the Trading Risk Rendez-Vous in New York, Daniel Brookman said the (re)insurer of the future will be “large, global and present”.