Renewals

Amid an April renewal that resulted in a slower pace of typhoon rate increases, ILS deals covering Japan have held up above historic lows.

Reinsurance underwriters and brokers anticipate a Japanese renewal largely unaffected by Covid-19 as negotiations continue to focus on payback for 2018 and 2019 typhoon losses.

The personal and commercial lines book will be folded into recently-acquired Centauri Insurance.

Event definitions were also tightened at renewals, the broker said.

The carrier predicts Covid’s reinsurance impact will drive market hardening.

The French reinsurer reported average treaty price increases of 7.8% in January and predicted rate growth through to 2022.

One estimate suggested around $2bn of new capacity in private deals.

The reinsurer was chasing a high 15% net return target but said lower demand and capital trapping made this unachievable

The carrier maintains its 2021 profit forecast amid 8.5% 1 January premium growth.

But analysts added that slowing rate momentum suggested the hard market could end this year.

The flood insurer cut just under $200mn of limit from its renewal, enabling it to pare back its outlay, although nominal programme-wide rates rose 13%.

Limited new inflows supported the collateralised and sidecar markets as cat bond offerings attracted significant capital.