Rates

The JLT index is below levels recorded in 2016 and around 30 percent below 2013 benchmarks.

A key question is whether retro dislocation will spill over into reinsurance renewals.

In the US, renewal results varied widely and wildfire losses were a subject of focus.

Spreads on the health insurance cat bond have dropped, but still above the record low level on the 2018 deal, according to sources.

The broker said deployable ILS capacity could become more broadly constrained, but equally there were signs capital could increase.

The carrier will retrocede the majority of its exposure.

As less ILS capital was available at 1 January, retro rates rose by up to 35 percent on loss-hit deals, the broker said in its 1st View report.

Quota share and aggregate retro remain the most disrupted pockets of the market ahead of the January renewals, as underlying reinsurance looks flatter.

The manager also said the spread-widening associated with Florence and Michael had a dampening effect on cat bond performance.

US homeowners’ insurance business is likely to deliver an after-tax return on equity (RoE) of 5.5 percent in 2018, up from an estimated 4.5 percent in 2017, according to an Aon Reinsurance Solutions report.

The AlphaCat CEO will assist AIG with the use of modelling technologies.

Munich Re said there was growing pressure for underwriting discipline.