Posts Tagged ‘surety’

February 20th, 2012

January 2012 Reinsurance Renewal: Surety

Posted at 1:00 AM ET

Surety reinsurance pricing declined at the January 1, 2012, reinsurance renewal, largely because industry loss ratios are near historical lows and capacity is sufficient to meet demand. General treaty rates fell 5 percent to 10 percent.

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September 13th, 2011

Guy Carpenter Announces New Executive Appointments

Posted at 9:00 AM ET

Guy Carpenter & Company announced several changes to its global management structure.

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February 8th, 2011

Chart: Specialty Lines - Typical Excess of Loss Rate Changes at the January 1 Renewal

Posted at 1:00 AM ET


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February 2nd, 2011

2011 Reinsurance Renewal Rates: US Surety

Posted at 1:00 AM ET

141x141jan1thumb49Continued industry profitability combined with decreases in exposure, and revenues have led to a decline in surety reinsurance pricing at the January 1, 2011 renewal. This follows relatively conservative pricing for the past three years, resulting from reinsurer uncertainty about the potential impact of the credit market developments in 2007 and ensuing financial crisis and recession. Reinsurers are modifying their outlooks on the market, which is leading to reductions in pricing because of low underlying losses.

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November 22nd, 2010

2010 Market Update: Insight from Guy Carpenter’s Credit, Bond and Political Risk Team

Posted at 4:00 AM ET

David Edwards, Managing Director

Guy Carpenter & Company, LLC (Guy Carpenter) has released its fourth annual market update from its London-based Credit, Bond and Political Risk Team.

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March 3rd, 2010

North American Surety Annual Renewals

Posted at 10:00 AM ET

Primary rates for the surety line have remained stable even as the recession weakened the financial strength of many principals. Over the past three years surety loss ratios have remained low compared to their historical trend. Profitability levels in the surety line along with a competitive environment trying to increase market share have held back potential industry-wide rate increases.

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September 24th, 2009

Casualty Specialty Update: The Credit Crunch and Reinsurance

Posted at 1:00 AM ET

casualtyDavid Lewin, Managing Director

When problems in the subprime mortgage market erupted into a full financial catastrophe last year, conventional wisdom suggested that property and casualty (P&C) insurance companies would suffer. The culprit, many believed, would not be investments in mortgage-backed securities (MBS) like the life insurers. Rather, it would be the possibility of slipped bond ratings because of problems with bond insurers, ultimately lowering the value of the bonds held in P&C investment portfolios. The increase in insured losses as a direct result of subprime and the ensuing credit crunch would certainly drive P&C companies to have poor returns, the thinking continued. Even at the mid-point of 2008, talk of a turn in the market began to percolate.

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September 8th, 2009

Guy Carpenter Briefing Finds Rising Interest Rates Could Affect Reinsurers’ Claims-Paying Ability over Long Term, Industry Stable despite Lingering Effects of Financial Crisis

Posted at 12:30 AM ET

casualtyA briefing published today by Guy Carpenter & Company, LLC looks ahead to the possible effects of inflation on long-tail reinsurance, as well as the impact of the credit crunch on reinsurers in the wake of the subprime mortgage crisis. The briefing, Casualty Specialty Update, examines the twin pressures that inflation and the global credit crunch are exerting on the global casualty reinsurance industry.

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July 21st, 2009

U.S. Surety Renewal at July 1, 2009

Posted at 1:01 AM ET

Eric van Elkan, Managing Director and Scott MacColl, Managing Director

Reinsurance renewals for surety cedents generally remained flat (with some slight increases) through the July 1, 2009 renewal in the United States. The price increases that did occur were driven by program size, changes in net exposure and loss experience — larger programs that needed more capacity tended to sustain the greatest increases. Smaller programs with favorable loss histories, on the other hand, generally saw reinsurance rates remain flat.

As the industry looks ahead to the end of the year, some are concerned that broader economic instability could lead to higher insured losses, which would result in an increase in reinsurance rates at the January 1, 2010 renewal. Claim frequency is up this year from the historical low levels of 2008, yet loss ratios for 2009 remain below the industry’s historical average. Economic stability should alleviate any upward pressure on reinsurance rates, particularly since claims are still fairly low.