Renewals

As less ILS capital was available at 1 January, retro rates rose by up to 35 percent on loss-hit deals, the broker said in its 1st View report.

Quota share and aggregate retro remain the most disrupted pockets of the market ahead of the January renewals, as underlying reinsurance looks flatter.

Last year’s feast has repeated on the market as Irma losses deteriorated, while fresh wildfires have caught out those who loaded up on liability exposure.

Steep reserve deterioration may reduce confidence in the fund’s reserving process, Jefferies analyst said in a recent note.

The firm’s 2017 portfolio loss has risen 15.7 percent to 57.1 percent.

The manager also said the spread-widening associated with Florence and Michael had a dampening effect on cat bond performance.

Sources said that Berkshire Hathaway will not support the cover for 2019.

Continuing cat losses and dislocation at Lloyd’s should support reinsurance renewal rates, the reinsurer suggested.

Munich Re said there was growing pressure for underwriting discipline.

Human behaviour now has a smaller role in determining pricing, according to the broker's president and global head of casualty.

The carrier also signed up 50 percent more investors during the July renewal.

ILS managers were offering larger line sizes and seeking to compete more often on reinstateable layers in the Florida June renewal, Willis Re observed in its mid-year 1st View report.