Rates

The Floridian insurer has reduced the target size of the deal from $75mn to $70mn, as spreads on the transaction have risen 23-24 percent year on year.

The deal will take the organisation’s cat bond cover up to $1bn including past transactions.

Rising Jebi losses will contribute to a squeeze on capacity.

Issuances from United Insurance Holdings, American Integrity Insurance Company and Safepoint have all reflected an uptick in pricing compared with prior-year benchmarks.

The insurer increased its participation at the Japan renewals in April.

The cover was raised across five tranches.

Both tranches of Fema’s $300mn FloodSmart Re cat bond have priced at the upper end of the initial guidance.

The state is “still a cash cow for reinsurers” as over the past decade the Florida reinsurance combined ratio has been running at 79-80 percent, according to the analysts.

The bill will now pass to the rules committee.

Some reinsurers are saying their views of Florida risk have changed post-Irma.

The changes in insurer appetite to participate in the Florida Hurricane Catastrophe Fund and new guidelines from ratings agency Demotech could create opportunities for the ILS market.

The impact of Hurricane Irma loss creep is coming to the fore ahead of the June renewals.