The outstanding catastrophe bond market has reached and passed $26 billion in size again, the first time since early April 2016, as the completion of the CEA’s $500m Ursa Re Ltd. (Series 2016-1) cat bond and American Strategic Insurance Group’s $200m Bonanza Re Ltd. (Series 2016-1).
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Natural disasters, such as weather and geophysical catastrophe events, have been the direct cause of sovereign rating defaults in the past, but risk transfer, insurance and reinsurance can all help to support sovereign credit worthiness, with catastrophe bonds a tool available to help countries manage disaster risk.
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PERILS AG, provider of industry-wide European catastrophe exposure, industry loss data and indices, has finalised its industry loss estimate for the UK floods due to storm Desmond that struck the country in December 2015 at £604 million.
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Global reinsurance firm Swiss Re believes that the long-term outlook for the re/insurance industry is positive and that growth potential, in what it terms risk pools, will provide it with attractive opportunities to allocate its capital to.
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Global insurance and reinsurance firm Hiscox today announced that Mike Krefta is to take over as Chief Executive Officer (CEO) of Hiscox Bermuda, Hiscox Re and insurance-linked securities (ILS), replacing Jeremy Pinchin.
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25% of re/insurers will use capital markets more in 2017: Guy Carpenter

December 1, 2016

A quarter of insurance and reinsurance companies say that they will use the capital markets to an increasing degree in 2017, according to data from a survey of 107 re/insurance professionals undertaken by Guy Carpenter.

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Hedge fund reinsurers’ Q4 returns differ, but positive so far in 2016

December 1, 2016

The investment returns of the two main hedge fund reinsurance firms, being Greenlight Re and Third Point Re, reveal a reversal of the negative trend witnessed throughout last year with both firms’ year-to-date figures showing an investment gain, despite differing performance so far in Q4 2016.

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Potential for ILS collateral mechanism tensions to emerge post-loss: Speakers

December 1, 2016

The range of fully collateralised insurance-linked securities (ILS) mechanisms remain largely untested in the face of a large loss-event, and the complexity of extreme events suggests that potential tensions within the marketplace could emerge after an event, according to industry leaders.

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Market unprepared for ‘silent’ cyber loss aggregation: Welsh, Sciemus

December 1, 2016

Insurance and reinsurance companies are in the main, not sufficiently equipped to underwrite and model cyber exposure and lack the required capacity to address the rising threat of an aggregation of losses from ‘silent’ cyber attacks, according to Rick Welsh of Sciemus.

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Pressure on U.S. P&C insurance sector causes Fitch to turn negative

November 30, 2016

The outlook for the U.S. property & casualty insurance sector is now negative, according to Fitch Ratings, reflecting the challenging operating environment and expectation that competition is set to increase, while profitability has been on the wane.

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Weather interconnections insufficient to affect reinsurer capital reqs: Study

November 30, 2016

A recent study completed by the Met Office that was commissioned by the Lloyd’s of London specialist insurance and reinsurance marketplace, supports the notion that independence in re/insurers’ internal models for weather events across the globe is appropriate, suggesting no need to hike required capital levels.

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NZ quake to cost re/insurers up to NZ$5bn, business interruption key

November 30, 2016

The recent magnitude 7.8 earthquake that struck the Kaikoura area of New Zealand could result in a cost to the economy of up to NZ$8 billion, with insurance and reinsurance potentially paying as much as NZ$5 billion (almost US$3.6 billion) of the loss, according to the country’s Reserve Bank.

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Standard & comprehensive reporting would benefit ILS investors

November 30, 2016

As the insurance-linked securities (ILS) space continues to evolve, increasingly becoming an integral part of the reinsurance and broader risk transfer landscape, industry experts have underlined the benefits of establishing a set of standard, and comprehensive information and reporting guidelines to assist investors in the space.

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Latin American countries seek joint cat bond cover for quakes

November 29, 2016

It’s been reported that a number of countries in South America are looking to sponsor a catastrophe bond to protect against earthquake risks, with the help of reinsurance giant Swiss Re.

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Reinsurance helps Bermudian insurers resilience, but ILW use drops

November 29, 2016

During 2015 Bermuda domiciled insurers utilised a range of reinsurance solutions to insulate themselves from catastrophe events, with the level of reinsurance dependent on the peril, according to a new report from the Bermuda Monetary Authority (BMA).

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