The premium reductions for the Group Reinsurance programme are welcome news.
Recent loss history has been favourable, while falling global marine premiums and increasing capacity have aligned to generate meaningful rate reductions.
The softening of passenger premiums is a boost for those in the sector and, one might argue, somewhat overdue. It is worth remembering that this class makes up a vast part of the whole premium base and that this volume means heavy claims - should they materialise - can be absorbed in a relatively short period.
The structure of the placement sees the Group increase the Pool limit to USD100 million and they continue with Hydra taking greater involvement- this we suspect will be a continuing theme.
2016 and 2017 Policy Year Rating Comparison
Above figures are expressed as USD per GT per annum