The target size for giant Japanese reinsurance buyer Zenkyoren’s latest catastrophe bond issuance has increased dramatically, rising 180% to $700 million for the sponsor, as it seeks to continue expanding its use of ILS to transfer earthquake risks to the capital markets, while at the same time pricing indications have dropped.
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The use of an industry loss warranty (ILW) structure in inherently complex and rapidly advancing risks, such as cyber and terror, could support the repeatability of other structures and ultimately assist the innovative efforts of the insurance-linked securities (ILS) market, according to Property Claim Services (PCS), a Verisk Analytics business.
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The Pacific Catastrophe Risk Insurance Company (PCRIC), a parametric catastrophe insurance facility for the Pacific Islands which is supported by the World Bank and others, has made its largest ever payout of $3.5 million to Tonga after the impact of Cyclone Gita.
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Rosh Capital Management, LP is exploring the viability of launching a total return reinsurance platform to be based in Bermuda. The approach will be to integrate a multi-manager asset strategy with both prospective and retrospective underwriting solutions, to meet demand within the current underwriting environment.
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The Bermuda Monetary Authority (BMA), the financial regulator on the island, is requesting a more granular level of detail on activities involving alternative reinsurance capital and insurance-linked securities (ILS) underwriting, seeking detail on any re/insurance business financed by directly capitalised mechanisms.
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AXIS’ premiums ceded to capital partners near $500m, fees earned hit $36m

February 20, 2018

Bermuda domiciled insurance and reinsurance firm AXIS Capital Holdings Limited has been steadily building on its relationships with third-party capital providers, or strategic capital partners as it calls them, resulting in the firm ceding nearly $500 million of premiums to them in 2017.

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Private LI Re 2016-2 cat bond, from Hannover Re vehicle, matured early

February 20, 2018

A $10 million LI Re (Series 2016-2) private catastrophe bond that was issued by German reinsurance firm Hannover Re’s segregated accounts vehicle Kaith Re Ltd., has been matured early and its notes have been delisted as a result.

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World Bank looking to “push the boundaries” of ILS capital: Michael Bennett

February 20, 2018

The establishment of the World Bank’s capital-at-risk notes program almost four years ago set the foundation for continued innovation and expansion, as the organisation looks to “push the boundaries” of insurance-linked securities (ILS) market risks, according to Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury.

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ILS growth to persist as investors show optimism: Dubinsky, WTWS

February 19, 2018

Insurance-linked securities (ILS) investors responded to 2017 catastrophe events with growth and optimism and further expansion is expected throughout 2018, with InsurTech offering some potential, according to Bill Dubinsky, Managing Director and head of ILS at Willis Towers Watson Securities (WTWS).

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Kane LPI hires Fournier as Head of Fund Administration Services

February 19, 2018

Kane LPI, a specialist firm providing fund administration and related services to the international Life, Pension & Investment sector, including to some insurance-linked securities (ILS) funds, has hired Alain Fournier as Head of Kane LPI Fund Administration Services.

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Nuclear liability risk ILS transactions upsized for 2018

February 19, 2018

Private nuclear liability risk insurance-linked securities (ILS) transactions have been expanded and upsized for 2018, Artemis understands, as corporate nuclear power operators show increasing comfort with tapping ILS markets for direct insurance coverage.

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Jan 1st reinsurance renewal pricing more a ceiling than a floor: KBW

February 19, 2018

Reinsurance rates at the January 1st 2018 renewal season may be as good as it gets, with pricing levels seen as a “ceiling” rather than a “floor” by analysts, who suggest that if the mid-year renewals see price increases at a level with the start of the year reinsurers should be satisfied with the outcome.

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Best of Artemis, week ending 18th February 2018

February 19, 2018

Here are the ten most popular news articles, week ending 18th February 2018, 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.

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Mexico 7.2 quake rattles new World Bank cat bond

February 17, 2018

A magnitude 7.2 earthquake that struck southwest Mexico in the Oaxaca region, causing buildings to sway in the capital Mexico City over 200 miles away, has hit directly within the parametric trigger zones for the recently issued World Bank supported IBRD CAR 118-119 catastrophe bond, but the magnitude is unlikely to be high enough to […]

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AXA not renewing its Calypso cat bond for 2018

February 16, 2018

French insurance and reinsurance carrier AXA is not renewing its property catastrophe bond for 2018, as the firm currently finds traditional reinsurance pricing more attractive and sees the costs of sponsoring cat bonds, both financially and in terms of effort, as high.

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