Property

Many insurance carriers will struggle to make a profit this year, as despite increased rates, carriers’ books are still underperforming, according to RPS executive James Rozzi.

The (re)insurer remains committed to cutting volatility and adjusting its risk profile by moving to specialty segments and repricing businesses where margins are inadequate.

The business will be underwritten by Homesite Group, a subsidiary of American Family Mutual Insurance.

The notification comes after a $100mn filing from Tulane University reported by this publication earlier this month.

The exit in London comes at a time of wider market discussion around the adequacy of cat pricing.

The deductibles bill passed by the Senate and signed into law during the summer has raised concerns among underwriters and brokers.

With loss exposure reduced, FM Global is doling out premium offsets of up to 15% on renewals to policyholders.

“Certainly, I'm concerned about solvency, but I'm extremely confident that we will come out of this with as robust and competitive a property insurance market based on these small regional carriers,” Donelon told this publication.

The cat modeller’s estimate follows a $950mn projection from Karen Clark and Company.

“We can't lose sight of the fact that we are in the business of actually mitigating risk,” the executive said in an interview with Inside P&C.

“When you deploy property aggregate, the return you need on that is meaningful in light of the risk that you’re assuming,” Zaffino said Thursday. “I’m not sure if a plus mid-single digit [rate increase] gets you there in light of the [loss activity] we’re looking at.”

The updated loss estimates come on top of the $14bn to $19bn industry loss range the analytics firm provided last week.