Property treaty

The pace of rate hikes will ease back from the 1 January reset as buyers seek to lock up capacity early after last year’s dislocated renewal.

The ratings agency repeated its expectation that 10% of ratings in the (re)insurance sector will be affected by its new criteria.

Mark Cloutier set out Aspen’s plans for top-line 2023 growth in the range of 10%, and a continued strategy of pursuing rate rather than exposure growth in property cat.

The forecast included two intense hurricanes, six hurricanes and 12 tropical storms.

Aon said it was “optimistic” that the market is now on a more stable footing following a turbulent 1.1.

Reinsurers achieved an average ROE for 2022 of 5.2% – far below the cost of capital – in what Aon described as a “poor year for reinsurance sector earnings”.

The broker’s international chairman said that without an influx of new capacity, the market will remain disciplined.

S&P plans to publish a capital model prototype with its revised proposals for ratings methodologies, in its latest move to seek market feedback.

Sources pointed to increased pressure to lift minimum rates on line above 2.5% on upper layers of wind programmes.

S&P published its first consultation on proposed changes to its risk-based capital adequacy methodology in December 2021.

Large visiting contingents from Florida to the Bermuda Risk Summit highlighted ongoing concerns around cat capacity availability.

The MGA’s international platform hopes to bring in MGA underwriters looking for US expansion.