Property catastrophe reinsurance market analysis from Jefferies

Posted 04/06/2024 – Quick takes

Analysts from investment bank Jefferies have highlighted that property catastrophe reinsurance prices and terms and conditions have held in the Bermudian Insurance-Linked Securities (ILS) and reinsurance market. The analyst team said that “market pricing remains at very attractive levels…. (and they expect) the market to remain disciplined at the 1/1/25 renewals, regardless of the outcome of the hurricane season”. Jefferies also noted the record catastrophe bond issuance this year, but whilst there is some increased supply of reinsurance capital, reinsurance demand had too increased.

Alpha comment

Jefferies’ commentary from their analysts is very encouraging and echoes the message that our Lloyd’s underwriters have been telling us. Catastrophe reinsurance prices have increased significantly in recent years and are rated very adequately. We await to see how active the 2024 hurricane season will be, however if Jefferies are correct in their assumption that for the 1/1/25 renewals, underwriters will continue to be disciplined, that will only be positive for capital providers and the future market profitability.

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