-
The reinsurer was chasing a high 15% net return target but said lower demand and capital trapping made this unachievable
-
The carrier maintains its 2021 profit forecast amid 8.5% 1 January premium growth.
-
But analysts added that slowing rate momentum suggested the hard market could end this year.
-
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%.
-
Limited new inflows supported the collateralised and sidecar markets as cat bond offerings attracted significant capital.
-
Aggregate retro capacity has “reduced enormously” but rate increases were less severe than some had feared, the Willis Re international chairman said.
-
Capacity was constrained but some ILS funds were able to grow, while cat bonds also propped up supply.
-
New capacity and fewer problems with trapping contributed to a smoother renewal than some had expected.
-
US cat renewals are outpacing European increases, but as signalled earlier this month, the level of rate hikes has fallen back.
-
Costs outpaced the European benchmark rate change, but Covid loss negotiations have been deferred.
-
Cedants and reinsurers perform a "slow dance" around pandemic losses, with claims negotiations deferred beyond renewal.
-
A fresh BI ruling in Australia this week highlighted the industry's reason for caution over Covid exposure as legal actions continue.