21 February 2020Insurance

January 2020 reinsurance renewals showed decline in alternative capital

The January 2020 renewals showed ample capacity as traditional capital growth offset a decline in alternative capital. This is according to a report from Kroll Bond Rating Agency Europe Limited (KBRA) titled January 2020 Reinsurance Renewals: Cyclicality and Catastrophes.

It said that large reinsurers are likely to maintain significant excess capital positions, even after continuing share buybacks and/or special dividends.

KBRA believes that the January 2020 renewals were slightly credit positive for the leading global reinsurance groups, based on their flexibility to reallocate capacity to hardening lines of business.

“In KBRA’s view, market sentiment is slightly positive albeit below expectations of most reinsurers,” said KRBA. “The market remains very fragmented with no clear direction and traditional cycles are a thing of the past. Loss-prone programs in property and specialty lines reported substantial rate increases, while moving sideways for other programs.

“The European casualty business showed some hardening but there is still some pressure on the US motor and US professional liability lines.”

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
22 April 2020   The reinsurer said it benefited from the broadly improving market conditions.
Risk Management
5 October 2021   The rating process will look at explicit strategies or programs to address ESG issues.
Insurance
18 August 2022   ‘The industry’s gross nominal losses will continue to rise’ if the ‘new normal’ holds.