Posts Tagged ‘renewals’



January 5th, 2016

Guy Carpenter Reports Stable Capital at January 1, 2016 Renewals

Posted at 11:30 PM ET

2016-gc-renewal-report-sm4Guy Carpenter & Company reports that overall capital levels dedicated to reinsurance have stabilized, showing no growth for the first time in several years.  In a highly competitive environment, companies assessed broader opportunities and the rate of incoming capital slowed. However, moderate loss experience kept capacity at abundant levels for the January 1, 2016 renewals. The continued scarcity of costly catastrophe losses and more than adequate capacity led to reinsurance pricing reductions, although there are signs the rate of descent is slowing as compared to 2015.  

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September 12th, 2015

GC Videocast - Rendez-Vous Press Briefing 2015 (David Priebe) Capital Developments

Posted at 8:30 PM ET

2015-mc-solo_david_priebe1Assessing the impact of the continuing influx of capital into the reinsurance sector,  David Priebe, Vice Chairman, Guy Carpenter, commented on ILS pricing levels. He said: “We believe current price levels for ILS could be a ‘golden compromise’ in which protection buyers perceive good value for fixed-price multi-year cover and investors continue to broaden and diversify their portfolio of holdings. With costs of issue falling and time-to-market shortening, this equilibrium could provide a substantial boost to the market that the record issuance of early 2015 portends.”

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September 12th, 2015

GC Videocast - Rendez-Vous Press Briefing 2015 (Nick Frankland) EMEA Developments

Posted at 8:30 PM ET

2015-mc-solo_nick_franklandLooking at developments in the EMEA region, Nick Frankland, CEO of EMEA Operations, Guy Carpenter,  described the last 12 months as a “testing period” for the market. Commenting on renewal expectations, he said: “Following another benign loss year, clients will continue to seek improved terms, yet reinsurers are beginning to get near to technical minimums, which will not allow enough scope for firm orders to be easily won.” Another influencing factor, he added, will be the impact of recent M&A activity and the interplay between the new combined groups and the existing markets. “Such a dramatic tension should work to clients’ benefit as they try to find the greatest value available and construct the most responsive panels,” he concluded.

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August 31st, 2015

July U.S. Casualty Renewal

Posted at 1:00 AM ET

Consistent with Guy Carpenter’s post-January 1, 2015 renewal report, the U.S. casualty reinsurance market continued to soften on both quota share and excess of loss reinsurance programs. This trend continues to be driven by the reduction in property catastrophe premiums, causing reinsurers to further diversify their overall premium writings into casualty lines and by the improved loss ratios among these underlying lines of business. As a result, reinsurance pricing continued to soften via ceding commissions increases on quota share placements (albeit at a slower pace than in 2014 and earlier in 2015) and rate decreases on excess of loss placements (subject to stable loss experience).

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August 27th, 2015

Property Price Declines Moderate

Posted at 1:00 AM ET

As Guy Carpenter predicted at the beginning of 2015, buyers continued to purchase more catastrophe limit to take advantage of the lower prices that have already occurred in most business segments and geographies.

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August 26th, 2015

Mid-Year Report: Executive Summary, Part II

Posted at 1:00 AM ET

The trends outlined in Guy Carpenter’s January 1 renewal report continued through the first six months of 2015. Guy Carpenter’s observation that buyers were purchasing more catastrophe limit to take advantage of lower costs, continued to be borne out and even accelerated. The increased demand for reinsurance and expansion of tailored coverage persisted through the April, June and July renewals.

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August 25th, 2015

Mid-Year Report: Executive Summary, Part I

Posted at 1:00 AM ET

The (re)insurance industry continues to evolve and adapt to a changing market on many fronts. Recent areas of focus include heightened cyber security risk, increased regulation, political and economic uncertainty, low interest rates and slow economic growth. At the same time, (re)insurers are managing new capital inflows, excess capacity and few catastrophe losses.

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July 9th, 2015

July 1 Renewals Reveal Price Declines Moderating Especially for US Wind-Exposed Programs

Posted at 1:00 AM ET

Guy Carpenter today released its July 1 Renewal Briefing  that shows price declines have continued to moderate, predominantly on programs covering US wind. Overall pricing was down again at the July renewal across virtually all geographies and lines of business. However, additional limit placed over the past few months is partially responsible for the stabilization of price declines, particularly for US property. Increased demand for reinsurance and expansion of tailored coverage persisted through the July renewal period from previous seasons.

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June 4th, 2015

June 1, 2015 Renewals Show Rate of Price Declines Moderating

Posted at 5:52 AM ET

Guy Carpenter & Company, LLC, a leading global risk and reinsurance specialist and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE:MMC), reports that after two years of  price decreases averaging 15 percent on U.S. property catastrophe placements, risk-adjusted pricing moderated at the most recent June renewals.

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July 7th, 2014

July 1 Renewals Reveal Continued Double Digit Price Decreases Across Many Lines and Geographies

Posted at 5:00 AM ET

Guy Carpenter reports that market pressures at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double digit range. As loss activity remained minimal, reinsurers added to surplus capacity and additional capital continued to come into the market via alternative sources. 

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