RENEWALS BROADLY STABLE BUT LOSS-IMPACTED RETRO LAYERS SEE DOUBLE-DIGIT INCREASES

Reinsurance renewals broadly defied early expectations of post-loss firming for the second consecutive year at the January 1 renewals, according to preliminary analysis by JLT Re. The reinsurance broker said reinsurers’ desire and ability to underwrite risks remained healthy overall, although loss-impacted business classes did see dampened reinsurer appetite and increasing demand. In particular, JLT Re said a number of lines in the US casualty reinsurance market showed early signs of tightening as reinsurers navigated an uptick in loss ratios and an increase in the frequency of severe losses. In the global property market, JLT Re said lost or trapped capital was not replenished to the same degree as last year, leading to double digit increases in loss-affected layers.