Why 2017 was a tough year for U.S. reinsurers
2017 brought a series of major natural catastrophes, including hurricanes Harvey, Irma and Maria and wildfires in California. Losses from these events weighed heavily on reinsurer results for the year.
Even when premium volumes grow, a heavy catastrophe year can sharply reduce underwriting profits. Reserve releases and investment income can only partly offset the impact.
Such years typically feed into firmer pricing at subsequent renewals, as reinsurers seek to rebuild margins and capital.