Property
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The influx of capital, combined with a quiet wind season, led to favorable conditions for cedants during 1.1 renewals. -
Cedants pursued property renewals “aggressively” amid excess reinsurer capacity.
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This was the second issuance completed by Farmers via its Bermuda reinsurance vehicle Topanga Re.
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Los Angeles wildfires and SCS pushed US losses to $89bn.
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Several Lloyd’s syndicates are also now providing cover for the federal insurer.
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The peril has been historically difficult to model compared to others.
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The storm devastated Jamaica and Cuba, but insurance penetration on the islands is low.
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Widespread underinsurance and low exposures will limit losses.
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Many commercial risks will have London coverage, but insured values are relatively low.
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Hurricane warnings are in place for Guantanamo, Holguin and Las Tunas.
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Economic losses from the Cat 5 storm could run 30%-250% of the country’s GDP.
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A US landfall is not expected, but the storm could hit the Bahamas by Friday.
