Rates

Covid-19 losses and other catastrophe events have exhausted the catastrophe budgets of many companies, the ratings agency said.

Underwriting margins need to improve by as much as 7-12 percentage points to compensate for lower interest rates, the carrier states.

As new PE inflows arrive in the sector, it remains to be seen how this will be matched on the ILS side.

Coronavirus is just one factor driving rate increases, (re)insurers said.

The outgoing CUO emphasises large pro-rata book and interest rate impact.

The utility spent 13% more to secure its insurance but cut back third-party cover to $870mn.

The French reinsurer guides away from an equity raise as it predicts further rate hardening.

A hardening market could encourage diversification away from property catastrophe, the ratings agency says.

Cat programmes have been completed this year, but a heavy hurricane season could shake up the market, the broker said.

The start-up carrier had initially sought $150mn of North American storm and earthquake cover from its first-ever cat bond.

The rating could fall if the company fails to meet deadlines, the agency has warned.

Twelve Capital's Urs Ramseier says the potential for more distressed opportunities to appear will depend on the extent to which carriers pass on increased reinsurance costs to policyholders