Renewals

The industry is expected to improve its return on capital slightly in 2022.

The French reinsurer’s vehicle has renewed for the fourth consecutive year.

The Federal Emergency Management Agency trimmed its spend on the program by 12%.

Many private deals featured in final renewals negotiations as overall cat risk appetite was cut back, with some ILS segments hard-hit.

As the renewal is expected to spill over into 2022, the two-speed market will put pressure on retro-reliant carriers.

The shortage of sidecar capacity could have a knock-on impact to broader renewals.

This year, instead of talk about running late, people were highlighting how the starting gun has barely been fired.

The retro renewals are barely underway, as a challenging fundraising environment and queries over loss experience has delayed the typical pace of progress.

Its reinsurance premiums ceded are expected to reach $207mn, up from $175mn a year earlier.

The retention was $80mn which will reduce to $55mn for second and third events.

Willis Re international chairman James Vickers said that the ILS market played a strong role in the Florida renewals, but it was becoming more difficult to judge the overall impact of the sector as more capacity stays behind rated balance sheets.

The broker said a buoyant ILS market contributed to the reinsurance market nearing a new equilibrium at the end of mid-year renewals.