KBRA Comments on Midyear Property Catastrophe Reinsurance Renewals
NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases new commentary, Midyear Property Catastrophe Reinsurance Renewals on Track, in the wake of the first hurricane landfall of the 2019 Atlantic hurricane season. KBRA’s opinion is that property catastrophe reinsurance renewals among our rated property casualty companies in the June-July period are in line with expectations. Notably, both United Insurance Holdings Corp. and Heritage Insurance Holdings, Inc. announced increased property catastrophe reinsurance coverage at favorable pricing.
Many market observers had projected price increases of more than 30% for loss-affected layers and programs in the Florida insurance market. Loss-free catastrophe reinsurance programs in the state experienced renewal increases ranging from zero to the low double digits. In addition, there was speculation that many insurers would be unable to place their desired programs. As expected, the renewal results varied widely and depended on performance of ceding company programs in prior years, geographic footprint, and length of relationships.
KBRA’s ongoing surveillance of its rated insurance entities includes, but is not limited to, an analysis of reinsurance renewals. KBRA believes that its rated insurers are appropriately reinsured for the remainder of the 2019 Atlantic hurricane season and California wildfires.
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Fred DeLeon, Senior Director
Andrew Edelsberg, Managing Director
Donna Halverstadt, Managing Director