Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Florida property catastrophe reinsurance rates decline

Reprints

NEW YORK—Reinsurance rates for June 1 renewals of catastrophe-exposed property have declined up to 15% due largely to ample capacity, according to separate reports issued Tuesday.

According to New York-based Guy Carpenter & Co. L.L.C., average property catastrophe reinsurance quotes for Florida programs renewing June 1 fell 5% to 7% from a year ago. This year’s terms had an average decrease of 5% to 7% in the lower layers, where capacity was less abundant, and a 13% to 15% decline in the upper layers, Guy Carpenter said.

The declines have returned pricing close to that seen in 2008, particularly in the upper layers, according to the briefing.

Separately, Chicago-based Aon Benfield Inc. said record levels of reinsurer capital saw rates for catastrophe-exposed property in Florida decline an average of 10% to 15% for June 1 renewals, with greater variance based on reinsurers’ views of the cedent credit quality.

The continued softening is in line with its Jan. 1 projections, Aon Benfield said.

Despite recent loss events, including the Chilean earthquake and Windstorm Xynthia in Europe, reinsurers’ capital rose 8% to $434 billion in the first quarter of 2010, surpassing the record levels set in 2007 prior to the global financial crisis, Aon Benfield said.

The report, “Aon Benfield Reinsurance Market Outlook June 1 Update,” can be accessed online at www.aon.com.

The Guy Carpenter briefing, “June 1 Reinsurance Rate Decreases are One Positive Development for Florida Companies,” can be accessed at www.guycarp.com.