Rates

The ratings agency also raised concerns about the long-term stability of the reinsurance market.

The start-up fronting and risk sharing carrier was given a preliminary A- rating in March.

Improvements to models and peril exclusions are expected to encourage growth once losses have been settled, the ratings agency said.

Non-renewals initiated by insurers surged by 10 percent in the areas of California worst affected by wildfires between 2015 and 2017.

The market is seeing substantial rate rises as more business flows in from the admitted market.

Since the 2017 and 2018 California wildfires reinsurers have become increasingly cautious of the risk, the rating agency said.

Axa XL cut back revenues on property cat reinsurance business by 7 percent in H1.

The carrier has meaningful available capacity to deploy, according to CFO François Morin.

Some four to six carriers are working on rated collateralised vehicles, following in the footsteps of Lumen Re and Humboldt Re, according to Aon managing director of ILS management Steve Britton.

The rate increases were less differentiated than the 1 June Florida rises.

The personal line carrier’s Camp Fire loss estimate is believed to have fallen from $1.8bn to $1.75bn.

The small first layer of its A$7bn reinsurance treaty was expected to face a significant rate increase but upper layers remained flat.