Hamilton joins the chorus: reinsurer solidarity will last the mid-years

Hamilton joined the growing chorus of reinsurers singing accolades to the solidary discipline which reinsurers will bring to bear on mid-year reinsurance renewals, to maintain both rate and deal terms. 

“Discipline will remain in the market,” Hamilton's CEO Pina Albo told her company's first quarter earnings call. 

Mid-year renewals, focused on property cat including the much-watched Florida market, may draw incremental doses of new capital as has been the case to date in 2024, but that capital will chase demand at the top of programs and fail to tip the overall market balance, she indicated. 

Albo expects another quarter of “some additional capital” showing up chiefly at the top end of programmes, a match to where she feels the market is “definitely going to see increased demand.”

Discipline will hold not only for rating, but for the other structural changes reinsurers fought out during the 2023 market reset, most notably heightened attachment points. 

“We see there very strong resolve on the part of the market to keep those intact,” she told analysts. 

Hamilton defined its own appetite as broader than just the mid-year property hitting the table over the coming 1-2 months and will try to leverage mid-year dealmaking to tie down a broader book, Albo hinted. 

“We have appetite across the property, casualty, and specialty business we write,” Albo told analysts, quickly citing Hamilton's “defined tolerance for PML” given the property-heavy focus of the mid-years. 

“We will look where to be deploy,” she said, “also looking at what other business we can secure with the clients that we transact with.”

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