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Duffy Tues 3pm Ven II
Duffy Tues 3pm Ven II
Agenda
Overview Market Drivers US Overview Quote and Firm Order Behavior Pricing and Structures Market Capacity Renewal Summary & Outlook
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Coverage
In an increasingly client-centric environment effective solutions were sourced through a combination of products and providers id Individual company priorities impacted how coverage changes were tailored Many y companies p ultimately y focused strictly on price, not changes in coverage
Market Drivers
Abundant supply Near record capital estimated at USD322 billion Li ht global Light l b ll loss activity ti it Near USD40 billion as compared to ten-year average of USD60 billion While much of the newer capital focused on peak catastrophe zones, its presence spurred competition globally
MARKET DRIVERS
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North America contributed 64% of global loss from 1980 2010; however two of the last three years were driven by international losses
GUY CARPENTER February 13, 2014
1. 2012 year 1 year-end end dedicated sector capital estimate was produced jointly by Guy Carpenter and A A.M. M Best Best. All subsequent estimates are solely Guy Carpenters.
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Market Drivers Catastrophe Bond Issuance and Capital Outstanding: 1997 YE 2013
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U.S. Overview
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In general, reinsurers were willing to support renewal or increased lines at pricing levels below initial quotes q
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Majority of programs renewed with similar structures, with no clear trends in structure changes
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1/1/14 represents a 15% decrease from 1/1/13 and a 9% decrease from the 2013 full year calculation.
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Significant variation in individual treaty renewal results due to a variety of factors including loss activity and historical factors.
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26% 23%
20.0%
15%
1% 0.0%
January February 2011 March 2011
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April 2011
July 2011
April 2012
July 2012
April 2013
July 2013
January 2014*
*Preliminary
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Important Disclosure
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