Analysis and insights on the global reinsurance and specialty markets

Analysis

Reinsurers go back to basics as 1.1 negotiations get underway

Where Monte Carlos past have often provided a stage for grandstanding on rates or visions for growing the market, this year’s Rendez-Vous was about getting back to the fundamentals of the deal as buyers and sellers seek a path to improved profitability.

Tight retro market to impact 1.1 reinsurance renewal

The significantly tighter retro market is likely to have a greater impact on reinsurer behavior at 1.1 than a hardening primary insurance market will, as buyers are forced to switch from aggregate and other alternatives to more expensive traditional occurrence and ultimate net loss (UNL) coverages.

The end of AIG’s reinsurance revolution?

It is hard to find any insurer whose reinsurance strategy has been overhauled as much as AIG’s has in the past few years. The signs are now pointing to some further changes to the US insurance giant’s programme, but with a stable underlying strategy informing reinsurance buying. This will likely ...

Where next for (re)insurance M&A?

In the first half of 2019, M&A in the global (re)insurance industry hit its highest level for four years. Activity was up in most regions, driven by a surge of deals in Europe that had previously been put on hold due to Brexit preparations, strong economic fundamentals in the US ...

Neal’s Lime Street revolution exposes Lloyd’s capital conundrum

The revelation that Lloyd’s is being accused of “bad faith” in the High Court by a high profile Name has shone a light on this determined-but-small community of private investors who may prove a challenge to CEO John Neal’s plans to overhaul some of the market’s complicated structures.

(Re)insurance stocks enjoy strong 2019 despite summer sell off

Non-life (re)insurance stocks have continued to do well in 2019, despite an equities sell-off in July-August, but traded ILS has remained relatively moribund after the traumas of 2017-18.

Swiss Re back on top of global reinsurance rankings

Swiss Re has reclaimed the top spot in AM Best’s list of the world’s largest reinsurers, boosted by 4.7 percent growth in its 2018 reinsurance gross written premium (GWP).

The Names’ capital conundrum: navigating a no-deal Brexit

They are a resilient lot, those Lloyd’s Names. Buffeted by the winds of economic and judicial adversity, this set of investors has remained a loyal and perspicacious component of the market.

Brokerage is the major drag on Lloyd’s declining results

As Lloyd’s awaits the next stage of its transformation, which already promises encouraging headway in improving efficiency, exclusive analysis from The Insurer has revealed that the true drag on Lloyd’s combined ratio is the consistently high cost of brokerage at the 331-year-old marketplace.

Paris’ ILS ambition reignites 1,000 years of cross-channel rivalry

Nothing unites the British like their entrenched dislike of the French. Over nearly a millennia of less than cordial co-existence from the Battle of Hastings to the Brexit referendum.

Alternative capital drop highlights reinsurers’ retro reliance

Ratings agencies believe the slowdown in the influx of alternative capital to the reinsurance industry will continue, which comes against a backdrop of increased reliance on the retrocession provided by third-party sources.

Legacy market: structured solutions take centre stage

The legacy market has often been a crucible for innovation, and this trend continues today, according to a new S&P report.

Swiss Re dips but Europe’s reinsurers hold firm as Dorian approaches

Shares in the “big four” European reinsurers — Munich Re, Swiss Re, Hannover Re, and Scor — broadly held firm on Friday, despite current projections that Hurricane Dorian is set to make landfall in Florida as a potential cat four hurricane late this weekend.

The insurability of cyber penalties – whose fine is it anyway?

A lack of clarity remains around the insurability of the fines for infringement of GDPR – such as the recent large penalties against British Airways and Marriott – as well as FTC and SEC fines for privacy violations in the US.

Commercial auto rate hikes overtake loss costs

US insurers are indicating the road ahead for commercial auto is smoother than in recent years, despite no slow down in the loss cost trends that have made it such an unprofitable line.

Analysis: Jebi and Michael deterioration hits Lloyd’s big guns in latest syndicate forecasts

A number of heavyweight Lloyd’s (re)insurers have posted worsening 2018 results because of a deteriorating claims experience from Japan’s Typhoon Jebi and the US’ Hurricane Michael but in contrast the market’s 2017 result continues to improve, analysis of the latest syndicate forecast returns by The Insurer has shown.