MARKET EXPECTS 'MID-TEENS' RATE HIKES AT FLORIDA CAT RENEWALS

Florida catastrophe reinsurance renewals are expected to see average rate increases in the “mid-teens”, with retro prices rising significantly higher, analysts predicted. Improved market discipline, driven by reinsurers’ changing view of risk, and limited new capacity entering the sector is driving the increases at the June 1 renewals, the Keefe, Bruyette & Woods (KBW) analysts said. The tight capacity in the retro market is expected to lead to rate increases of at least 25% on average for retro programmes, they added.