2011 reinsurance sector losses are already more than double 2011 reinsurer natural catastrophe budgets, according to global broking firm Guy Carpenter.
Guy Carp added the industry remains adequately capitalised at the beginning of US hurricane season, due partly to the strong capital growth in 2010.
The Florida reinsurance renewals on June 1, 2011 experienced a wide range of outcomes, as substantial catastrophe losses combined with two major catastrophe model revisions over the past 16 months led to a volatile renewal season.
David Flandro, global head of business intelligence, Guy Carp said:
“Significant loss activity and major cat model changes since last year’s renewals have impacted each reinsurer’s capital position and view of adequate pricing differently. The good news is that the reinsurance sector remains fully solvent, fully liquid and comfortably able to pay claims.”