Rates
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Overall, the CIAB Q1 survey recorded rates were up 6.6% in Q1. -
The Floridian carrier must improve its financial strength rating ahead of its 1 July reinsurance renewal.
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Downgrades are expected to be announced next week for some Florida carriers that are “already winding down”.
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There is a tension between securing payback and negotiating higher retentions.
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Wind excess-of-loss treaties renew with gains between 2% and 5% in “underwhelming” renewal.
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The carrier expanded premium by 8.3% at the January renewal.
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There is a lack of capacity for aggregate deals, and moves towards more named peril coverage.
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Inflationary pressure and climate change meant the market effectively gave ground to cedants despite nominal price rises.
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The firm has been in run-off since late 2020, and another former Credit Suisse affiliate was recently sold to legacy writer Marco.
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European loss experience drove the firm’s index back in line with 2014 levels.
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Noting concerns about rapid growth, the Citizens board approves rate hikes up to the legal limit.
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The projections are slightly worse than they were three months ago, as heightened cat losses and Covid-related pressures impact rates.
