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The year was marked by record North Atlantic storms, which put the loss tally more than 40% ahead of mild 2019 experience. -
The flood insurer cut just under $200mn of limit from its renewal, enabling it to pare back its outlay, although nominal programme-wide rates rose 13%.
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The broker forecast that this hard market may be more akin to the “discriminate and relatively short-lived" phase following 2005.
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Aggregate retro capacity has “reduced enormously” but rate increases were less severe than some had feared, the Willis Re international chairman said.
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Capacity was constrained but some ILS funds were able to grow, while cat bonds also propped up supply.
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There were nearly twice as many new issuances than in 2019, but margins have remained elevated in the post-pandemic rebound.
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Net assets across the manager’s interval and high-yield reinsurance funds totalled $3.82bn at 31 October, down 31% from a year earlier.
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Net assets have grown 5% year-on-year to $876mn as of 31 October 2020.
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New capacity and fewer problems with trapping contributed to a smoother renewal than some had expected.
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Target investments could include cat bonds and other reinsurance, though the allocation size is unknown.
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US cat renewals are outpacing European increases, but as signalled earlier this month, the level of rate hikes has fallen back.
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The 12 Days of ILS Christmas
