It was the “tsunami of alternative capital” that kept a lid on reinsurance rates and prevented a market turn after the major losses of 2017, but at the same time may have helped to stimulate more focus on rate adequacy in other lines of reinsurance business, according to the CEO of W.R. Berkley.
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Zurich headquartered insurance and reinsurance linked investment fund manager Twelve Capital Management has completed its fifth private catastrophe bond transaction of the year, with an $18.322 million Dodeka XVII transaction that listed in Bermuda yesterday.
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A decline in the volume of rated catastrophe bond and insurance-linked securities (ILS) transactions is a key indicator that ILS has become a more permanent source of risk capital and gained heightened acceptance by capital markets investors, according to Kroll Bond Rating Agency (KBRA).
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The increased size of Markel CATCo Investment Management Ltd.’s assets under management, to which it added another $700 million to meet mid-year demand for its retrocessional reinsurance products, has helped the firm to underwrite a 30% larger mid-year book at the same rates as its January portfolio was secured.
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The reloading of capacity after the 2017 catastrophe losses showed that the scare factor has gone for investors, according to S&P analyst Taoufik Gharib, meaning that fears of a softer-for-longer rate environment are unlikely to deter capital providers and as a result rate momentum is likely to fade in 2019.
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Hail drives most U.S. severe weather costs, another $10bn+ year expected

August 16, 2018

Hail can drive as much as 70% of all U.S. severe convective weather and severe thunderstorm losses for the insurance and reinsurance industry, with another $10 billion plus year of hail related economic impacts expected for the country in 2018.

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First-half re/insurance disaster losses below average at $20bn: Swiss Re

August 16, 2018

Losses from natural catastrophes and man-made disaster events are estimated to have cost the insurance and reinsurance industry $20 billion in the first-half of 2018, well down on the $35 billion average, according to global reinsurer Swiss Re.

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AXIS’ Product Center to modernise reinsurance underwriting & portfolio management

August 16, 2018

AXIS Capital Holdings Limited, the Bermudian insurance and reinsurance specialist, is seeking to modernise its reinsurance underwriting and portfolio management operations at AXIS Re, with the establishment of a new Product Center that will be led by ex-PartnerRe executive Marcus Pollack.

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Top reinsurers capital redundancy drops below ‘AAA’ level: S&P

August 16, 2018

Despite the constant reports of overcapitalisation in reinsurance, S&P reports that the top 20 reinsurance firms in the world have lost their capital redundancy at the ‘AAA’ confidence level for the first time since the financial crisis back in 2008.

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Risk adjusted returns of ILS need to remain appropriate: A.M. Best

August 15, 2018

The insurance and reinsurance linked investments space has value for its investors, as a diversifying asset with low correlation to broader financial market indicators, but this value is lessened or wiped out completely if the risk adjusted returns of ILS are not appropriate.

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Oxbridge Re has ambitions as “more of an asset manager” with new sidecar

August 15, 2018

Collateralized reinsurer Oxbridge Re Ltd. is looking to become more of an asset manager in the reinsurance space with its newly licensed Cayman Island’s sidecar vehicle, Oxbridge Re NS Ltd., according to its Chairman and Chief Executive Officer (CEO), Jay Madhu.

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IAG adds stop-loss protection as part of increased reinsurance spend

August 15, 2018

Australian primary player Insurance Australia Group (IAG) has spent significantly more on its reinsurance protection in the last six months and added stop-loss protection to cover it when catastrophe losses go above its natural perils budget and servicing a larger overall program.

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R&Q hires Bailey as it seeks ongoing innovation in the legacy space

August 15, 2018

Randall & Quilter, a Bermuda headquartered specialist non-life insurance and reinsurance investor, legacy or run-off transaction service provider and underwriting program manager (amongst other things) has hired Darren Bailey, an executive with ILS and capital markets experience.

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ILS has transformed reinsurance, conquered property cat: S&P

August 15, 2018

The use of insurance-linked securities (ILS), catastrophe bonds and collateralized reinsurance has transformed the reinsurance market and conquered the property catastrophe space, according to S&P, providing companies with a lever to acquire premium growth while still managing and controlling their peak exposures.

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Managing agents want greater use of ILS at Lloyd’s

August 14, 2018

Unsurprisingly, managing agencies in the Lloyd’s of London insurance and reinsurance market would like to see insurance-linked securities (ILS) as a permanent fixture and efficient capital options more readily accessible.

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