Large primary insurer Chubb successfully renewed its Global Property Catastrophe Reinsurance Program for its North American and International operations, significantly raising the retention for the North American program while adding a new layer of per occurrence coverage for named windstorms and earthquakes within Northeast states.
Chubb’s renewed global property cat reinsurance program consists of three layers in excess of losses retained by the insurer on a per occurrence basis.
For losses in the US (excluding Alaska and Hawaii) for 2024, Chubb’s all natural perils and terrorism cover attaches after a $1.75 billion retention, up $650 million from the $1.1 billion retention in the 2023 program.
As well as the higher retention, the structure of the program has also changed. Last year, Chubb had a three-layer approach for the US, with reinsurance for all natural perils and terrorism attaching at $1.1 billion in losses, then spanning three layers up to $3.5 billion.
For 2024, Chubb has secured a layer of reinsurance coverage for US (excluding Alaska and Hawaii) all natural perils and terrorism attaching at $1.75 billion up to $2.85 billion, and a second layer attaching at $2.85 billion up to $4 billion of losses. So, overall, having had all natural perils and terror reinsurance from $1.1 billion to $3.5 billion last year, Chubb actually has slightly less of this coverage for 2024.
However, after a $4 billion attachment, for 2024, Chubb has secured US (excluding Alaska and Hawaii) named storm and earthquake reinsurance coverage to cover losses up to $5.7 billion.
Additionally, effective September 1st, 2023, Chubb purchased an additional layer of per occurrence coverage for named windstorms and earthquakes within Northeast states, which attaches at $3.5 billion and covers losses up to $4 billion. This additional layer sits alongside the US named storm and earthquake coverage as an additional cover for that region.
Chubb also renewed its international property catastrophe reinsurance at the April 2024 renewals, again lifting the retention but also the top of the tower.
The retention for this coverage has increased from $200 million in 2023 to $225 million for 2024, after which international (including Alaska and Hawaii) all natural perils and terrorism cover extends to $1.325 billion of losses. Above this layer sits Alaska, Hawaii, and Canada all natural perils and terrorism cover up to $2.475 billion of losses. Last year, the first layer attached at $200 million up to $1.3 billion, and the Alaska, Hawaii and Canada layer extended up to $2.45 billion of losses.
All in all, for 2024, primary insurer Chubb has more reinsurance in-force in the top-layers, although with more in losses set to be retained in the US.
Source: Reinsurance News
