Zurich added European reinsurance limit, but 2023 cession rate down y/y
Zurich added limit atop its European all-perils reinsurance tower, but ended 2023 with a decline in its overall P&C reinsurance cession rate following reductions to the North American tower dating back to the mid-year renewals.
A $300 million top cat layer took the European all-perils tower to $2.38 billion, above $2.09 billion a year ago after minor tweaks to the lower retention and lower layer regional cat treaties, a comparison of reported tower structures suggests.
Zurich's P&C cession rate at year-end 2023 had come down to 17.0% from 17.5% one year prior, but most of the reduction came from upper layers of the US all-perils tower dating to the mid-year 2023 renewals.
The year on year change in P&C cession rate also includes a minor increase in lower layer regional cat treaties for the all-peril tower covering the rest of the world apparently enacted at the April 21, 2023 renewals, the review showed.
Additional treaties in force today include a global property per risk treaty, a US liability quota share dal and a global surety excess of loss treaty, management listed. That list was missing a US property quota share deal still listed as of the mid-year financial report.
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