Archive for December, 2016

Assicurazioni Generali sees the successful acquisition of €255 million of fully collateralised reinsurance protection from the capital markets, through the recent Horse Capital I DAC motor third-party liability loss ratio ILS, as an example of capital markets support for its strategic optimisation of its capital allocation.

Reinsurance price declines continued at the key January 1st 2017 renewals, albeit at a moderating rate, as rates in the global industry get closer to technical levels, below which profitability is eroded completely, according to broker JLT Re.

The Pioneer ILS Interval Fund, U.S. mutual fund manager Pioneer Investments insurance-linked securities and reinsurance linked investment fund, continued to grow in the last quarter reaching $161.7 million in size, while returning an impressive 11.23% in its last reported year despite catastrophe event impacts.

Despite the fact that rate declines are expected to slow down at the January 2017 renewals and beyond, for the insurance and reinsurance market 2017 is likely to be even more challenging than the year we’ve just seen, according to Kroll Bond Rating Agency (KBRA).

The Oppenheimer Master Event-Linked Bond Fund, LLC, a catastrophe bond focused investment strategy managed by Caleb Wong at OppenheimerFunds, has beaten its 2015 performance according to its latest annual report, returning 5.5% for the year to September 30th 2016.

Qualifying reported claims covered by the Gator Re Ltd. catastrophe bond transaction have now passed the attachment point, Artemis has learned, with the latest loss report for the cat bond revealing an impact of over $195 million at the end of November.

As part of the recent $160 million Limestone Re Ltd. multi-year collateralised reinsurance sidecar-like transaction from insurer Liberty Mutual $85 million of participating notes have been listed on the Bermuda Stock Exchange (BSX).

The once niche insurance-linked securities (ILS) asset class has matured into an influential part of the global reinsurance industry, helped by its solid performance during financial market turmoil and it’s ability to efficiently allocate capital. In a recent paper, Nephila Capital’s Laura Taylor highlighted such benefits of the space.

Here are the ten most popular news articles, week ending 25th December 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

The potential for risk accumulation has never been greater for global insurers and reinsurers, and with reserves diminishing further and broader market pressures expected to persist, A.M. Best warns that industry fundamentals could start to weaken.