Claims and losses

The company said adjustments to a previously reported loss related to ceded losses and commissions stemming from a quota share treaty with a captive reinsurer.

The insurer will pay a high-single-digit rate on line.

The firm has seen interest in non-named storm covers after last year's derecho and other loss events.

The offering ended up well below the $43mn size initially mooted, as the carrier turned to the public market after taking $41mn of losses from winter storm Uri.

Widening the range of models used could allow 20% more insurers to survive, the study claims.

First Coast Re 2021-1 is the insurer’s fourth cat bond and set an early start to Florida renewals.

Aon has said it expects the economic cost of physical damage and business interruption caused by the polar vortex-linked cold snap to “well exceed $10bn”, in an Impact Forecasting report released on Thursday.

The reinsurer’s ceded major losses were down 2% year-on-year, despite its net retained cat losses spiking by two-thirds to EUR1.6bn.

The firm's insurers picked up roughly a third of the carrier's losses for the year.

The overall $96mn year-on-year increase in ceded losses was mostly driven by higher storm activity, UPC said.

Trapped capital subdued the firm's overall fund return to a 1.6% gain, as primary insurance gains outweighed reinsurance losses.

Tighter cat bond spreads will prevail until issuance catches up with investor demand, the firm forecast.