Capacity for property reinsurance from regional reinsurers in the Middle East has been a major issue during 1 January renewals, according to Willis Re in its 1st View renewals report.
Pro rata treaty conditions have seen limited improvement for cedants who have been producing stable margins over a period, adds the report in highlighting features of the 1 January renewal season. Excess of loss pricing has once again come under pressure and cedants have achieved reductions.
The direct & facultative market in the region has seen major movements with capacity withdrawing. Pricing movements in the underlying direct & facultative market for property classes have witnessed substantial increases for large risks where placements are capacity driven.
Meanwhile, in Turkey, the gradual trend of a weakening Turkish lira accelerated in mid-2018 causing some redundancy of Euro limit and punitive minimum deposit premiums, says the report.
2019 market purchase (in Euros) in Turkey was significantly reduced, but firm pricing continued from 2018. Proportional renewals were stable despite given income expressed in local currency and limits in Euros.