Kroll Bond Rating Agency (KBRA) believes the insurers it rates are appropriately reinsured for the remainder of the 2019 Atlantic hurricane season and California wildfires.
In market commentary titled Midyear Property Catastrophe Reinsurance Renewals on Track, the rating agency said property catastrophe reinsurance renewals among property casualty companies it rates in the June-July period were in line with expectations.
Many market observers had projected price increases of more than 30 percent for loss-affected layers and programs in the Florida insurance market, KBRA said. In fact, loss-free catastrophe reinsurance programs in the state experienced renewal increases ranging from zero to the low double digits.
Both United Insurance Holdings and Heritage Insurance Holdings have increased their property catastrophe reinsurance coverage at favorable pricing, KBRA added.
KBRA noted renewal results had varied widely, depending on how successful insurers had been ceding company programs in prior years, geographic footprint, and length of relationships. Differentiation between cedants by reinsurers is being driven in particular by the accuracy of their previous catastrophe loss estimates, according to Willis Re.
Kroll Bond Rating Agency, United Insurance Holdings, Heritage Insurance Holdings, Willis Re