Reinsurers got off to a disappointing start to the New Year after a glut of capital in the market dashed hopes of higher renewal prices despite one of the costliest years on record.
Broker JLT Re said the January 1 renewal — a key date for fixing prices on contracts up for renewal — defied expectations with contract terms “broadly stable” from last year.
A spate of disasters, including the California wildfires (pictured) and hurricanes Florence and Michael, made 2018 the fourth most costly catastrophe year following a record-breaking $150 billion loss in 2017.
That had triggered hopes of firmer prices for 2019 but JLT Re said “abundant capital” had offset the pressures.
Global head of analytics David Flandro said: “Record levels of dedicated sector capital at year-end 2018 once again helped ensure continued, plentiful capacity across most lines at January 1, 2019.”
