December 2017/3

Reinsurers look unlikely to achieve a meaningful correction in US property catastrophe reinsurance pricing at 1 January, but will be able to point to a better than expected casualty renewal.

It is a universal rule of cinema that movie sequels are always worse than the original.

Reinsurance pricing reflects market fundamentals. And that is the story of this renewal to date.

In common with their property cat colleagues, US casualty reinsurance underwriters are suffering a late 1 January renewal, with most deals still awaiting firm order terms as of early December.

Casualty reinsurers are talking about brokers and clients taking a more "realistic" approach to dynamics in a sector where margins have been squeezed to the point of being unsustainable on many quota share deals.

Florida's state-backed insurer is preparing for a challenging 2018 that will see ongoing profitability pressures from assignment of benefits (AOB)-driven non-weather losses and an increase in reinsurance costs.

Reading external budget documents is unlikely to be high on the to-do list for reinsurers and brokers entering the frenetic last couple of weeks of a 1.1 renewal season that has run late and proved challenging.

The London property binders market is resisting rate decreases on US business at renewal in the wake of losses from the North Atlantic hurricanes.

Ogden rate uncertainty is giving reinsurers ammunition on motor excess of loss (XoL) renewals after intervention from a committee of lawmakers threatened to delay promised reforms.

UK insurers looking to establish infrastructure-light entities in the EU because of Brexit while servicing them from Britain could face hefty VAT bills, tax experts have warned.

At least $3.8bn of new capital has been raised in the space following significant losses from hurricanes Harvey, Irma and Maria (HIM), according to Trading Risk data.

Covea Group's first cat bond has settled below the lower end of initial price targets, according to Trading Risk sources.