Rates
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The forecast for real-term premium growth was depressed by anticipated claims inflation. -
The state-backed carrier has seen massive growth in the distressed Florida market.
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Rates have climbed 20%-35% since 1 January, and 40%-50% year on year, sources estimated.
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Overall, the CIAB Q1 survey recorded rates were up 6.6% in Q1.
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The Floridian carrier must improve its financial strength rating ahead of its 1 July reinsurance renewal.
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Downgrades are expected to be announced next week for some Florida carriers that are “already winding down”.
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There is a tension between securing payback and negotiating higher retentions.
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Wind excess-of-loss treaties renew with gains between 2% and 5% in “underwhelming” renewal.
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The carrier expanded premium by 8.3% at the January renewal.
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There is a lack of capacity for aggregate deals, and moves towards more named peril coverage.
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Inflationary pressure and climate change meant the market effectively gave ground to cedants despite nominal price rises.
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The firm has been in run-off since late 2020, and another former Credit Suisse affiliate was recently sold to legacy writer Marco.
