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Global re/insurer QBE has said that the January renewals saw the company’s progress validated by its reinsurance partners, as its catastrophe reinsurance protections were renewed with meaningfully lower retentions.
QBE said that the reduction in retentions was achieved thanks to recent reductions in its exposure base, as well as improvements to the quality of its underwriting portfolio, which were recognised by reinsurance markets.
QBE’s main catastrophe reinsurance retention has fallen to $300 million, having sat at $400 million a year ago.
For the US, the retention is at $300 million, down from the prior year’s $350 million.
For Australia, the likely maximum retention is now $260 million, down from $325 million, while for the rest of the world it is now $135 million, down from $250 million.
Otherwise, the company noted that the reinsurance tower remains “broadly consistent” with 2024.
The catastrophe budget for the coming year has been set at $1.16 billion, which is down on a year ago.
QBE explained that the, “Vast majority of reduction in 2025 CAT allowance versus prior year relates to non-core property exits.”
The re/insurer also said, ““As if” analysis highlights the 2025 allowance would have proven adequate in 8 out of the last 10 years. This analysis overlays the 2025 reinsurance program against QBE’s historic catastrophe claims experience (adjusted for inflation and business exits).”
QBE also added $250 million of multi-year collateralized reinsurance against peak North American perils in January, through its first catastrophe bond sponsorship in over a decade, in which it secured the Bridge Street Re Ltd. (Series 2025-1) issuance.
English (US) ·