Best of Artemis, week ending 18th December 2016

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

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Ten most viewed articles on Artemis.bm, week ending 18th December 2016:

1. Current year underwriting not profitable at Lloyd’s: Beale & Nelson
   Current accident year underwriting in the Lloyd’s of London insurance and reinsurance market is not profitable in the aggregate, according to the market’s CEO Inga Beale and Chairman John Nelson, which they term a “deteriorating and worrying trend” and a “great concern.”

2. Fermat & Hudson Structured lead on $79.5m private debt for Heritage
   The trend of insurance and reinsurance linked investment managers looking to access returns through insurance private debt provision continues, with two ILS managers leading a $79.5 million private debt issuance for U.S. primary property and casualty insurance group Heritage Insurance Holdings, Inc.

3. Reinsurance rates to fall at 1/1, tailored solutions an opportunity: RBC
   Analysts at RBC Capital Markets expect European reinsurers to experience further price declines at the start of 2017, but also sees some opportunity for more attractive returns in tailored solutions, an area that is likely to witness increased demand.

4. Enstar launches KaylaRe, a “differentiated total return reinsurer”
   Bermuda based insurance and reinsurance group Enstar has launched a new $620m total return reinsurer named KaylaRe Ltd., alongside investment manager Hillhouse Capital Management, Ltd. and financial services equity investor Stone Point Capital LLC.

5. Generali’s Horse Capital I motor liability ILS upsizes to €255m
   Assicurazioni Generali will secure an upsized €255 million (approx US$266m) of fully collateralised reinsurance cover for motor third-party liability loss ratio deterioration, after its innovative Horse Capital I DAC ILS or catastrophe bond like transaction grew by 42% at pricing.

6. Amundi buys Pioneer to create asset management giant
   Amundi, the largest European asset manager in terms of AuM, has acquired Pioneer Investments, a global asset manager with a strong focus on insurance-linked securities (ILS) and over $1.65 billion invested in insurance and reinsurance linked assets.

7. Tokio Solution re-arranges leadership, announces Lane departure
   Tokio Solution Management Ltd., the collateralised reinsurance, insurance-linked securities (ILS) and third-party capital arm of reinsurer Tokio Millennium Re, has re-arranged its senior leadership and announced the departure of Co-CEO Susan Lane.

8. SCOR grows its catastrophe & mortality contingent capital facility
   French reinsurance company SCOR has announced the issuance of a new three-year contingent capital facility that will provide the company with EUR 300 million of cover against losses from natural catastrophe and extreme mortality events.

9. Long-term viability at risk in reinsurance, outlook still negative: A.M. Best
   The outlook for the global reinsurance market remains negative at rating agency A.M. Best as the firm cites the “continued market challenges” and an expectation that the longer the outlook persists, the more likely to is that we see negative rating pressure emerge.

10. XL Catlin seeks $1bn from Galilei Re Ltd. multi-peril cat bonds
    XL Catlin companies are returning to the catastrophe bond market seeking $1 billion of capital markets backed reinsurance protection with twin Galilei Re Ltd. (Series 2016-1) and Galilei Re Ltd. (Series 2017-1) issuances.

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 23 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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Artemis’ Q3 2016 Catastrophe Bond & ILS Market Report – Weather risk returns, private deals, market growth

We’ve now published our Q3 2016 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the third-quarter of 2016, looking at the new risk capital issued and the composition of transactions completed during Q2 2016.

Q3 saw $1.087 billion of risk capital issued from eight transactions, making it the third most active Q3 of the last decade in terms of deal volume, and one of the busiest in the market’s history in terms of number of deals. Strong investor appetite for cat bond and ILS investment saw the outstanding market size increase from the $25.174 billion recorded at the end of Q2, to $25.449 billion.

Download your copy here.