Bermudian-based MGA Kettle, which focuses on United States wildfire risk, is seeing a clearer opening for excess and surplus property reinsurance, even as capacity providers grow increasingly selective.

Speaking on an S&P Global webinar, Isaac Espinoza, the chief executive, said capital has continued to flow into E&S risks, particularly on the property side, with a noticeable easing in reinsurance pricing.

“There has been an inflow of capital attracted to E&S risk, and some of it has been, or a lot of it has been, towards the property side. So when you think about reinsurance costs, there is some clear softening that's been taking place over the past year or year plus, but just gradually dropping down.”

Kettle operates as a balance‑sheet‑light MGA, writing on partner paper rather than its own carrier: “We're an MGA. We don't have our own balance sheet carrier. So we write on other carriers that we partner with and who either write through Lloyd’s or domestic carriers with the rated balance sheet.

“We select the risk, we price it, we underwrite it, but we align ourselves with a strategic partner that has the licensing to be able to conduct a business, and then we put together a portfolio of diversified risks.“

Mr Espinoza said that from Kettle’s vantage point, there is much reinsurance appetite for well‑structured portfolios. “There is healthy, healthy supply to support it,” he said.

However, he warned that the increasing number of MGAs means that capacity is more discriminating. Much of that capacity is sourced from hubs like Bermuda.

For Bermuda reinsurers and fronts, Kettle’s experience demonstrates that property reinsurance is softening and available, but only for MGAs with a profitability‑first mentality.

“That group is growing so rapidly that I think some capacity providers have a mixed appetite,” he said. “They really just want to make sure that who they’re supporting is focused on bottom line at least as much as they're focused on top line.”