Much higher catastrophe reinsurance profits expected in 2023: KBW

Analysts at Keefe, Bruyette & Woods Inc. said that much higher catastrophe reinsurance profits are expected in 2023 as rate increases will be significant due to the hardening market and severe capacity shortage, Artemis reports. Primary insurers are likely to take on significantly more risk, as reinsurance renewals come with higher attachments and stricter terms, as well as significantly higher rates.