Rates

The state body supporting earthquake cover has seen risk transfer requirements swell over the past decade.

Strategic Review Committee chairman Bruce Simberg sets out the challenge ahead for FedNat as natural catastrophes continue to hit southern policyholders.

Moody’s expects RMS, which had about $320mn in revenue around $55mn in operating income last year, to become accretive to earnings by 2025.

Environmental, social and governance (ESG) factors were the primary driver in 13% of ratings actions in the year to the end of March, according to AM Best.

The new adjustments will increase rates 7.6% on average after February 1, 2022.

Rates are still more than 40% ahead of the pre-Hurricane Irma trough in late 2016.

Willis Re international chairman James Vickers said that the ILS market played a strong role in the Florida renewals, but it was becoming more difficult to judge the overall impact of the sector as more capacity stays behind rated balance sheets.

The broker said a buoyant ILS market contributed to the reinsurance market nearing a new equilibrium at the end of mid-year renewals.

The intermediary also warned that inflation headwinds could affect the future cost of claims.

There is little sign of retro demand returning after buyers cut back in January.

The first-time ILS sponsor expects to pay a coupon at the lower end of its initial forecast.

Pockets of the distressed Florida market are still expected to face a challenging renewal, but much of the remediation was carried out last year.