Best of Artemis, week ending 17th September 2017

Here are the ten most popular news articles, week ending 17th September 2017, 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.

Ten most viewed articles on Artemis.bm, week ending 17th September 2017:

1. ILS losses expected. It’s how the market reacts that matters
   The insurance-linked securities (ILS) market is expecting pay its share of losses from recent catastrophe events, perhaps the most significant losses in the sectors 20 or more year history. But participants say they stand ready to support clients and explained today that it’s how the market reacts that matters.

2. Irma could be a market-changing event: David Priebe
   Irma is set to be a material loss for the insurance and reinsurance industry, with ILS markets anticipating one of the most significant events to hit the sector, said David Priebe, talking to Artemis on the Sunday morning of the Rendez-Vous event in Monaco.

3. New capital may not be willing to replace trapped collateral: Albertini, Leadenhall
   If rates do not harden materially post-Irma, there may not be appetite for new ILS capital to come into the industry to replace collateral that is tied up at 1 January, thinks Luca Albertini, speaking to Artemis at the Rendez-Vous de Septembre.

4. Private ILS maybe exposed to Mexico quake, FONDEN cat bond loss expected
   ILS and reinsurance linked investment manager Twelve Capital has said that there could be private ILS transactions, usually collateralized reinsurance arrangements, which are potentially exposed to last Friday’s magnitude 8.1 earthquake that struck off the coast of Mexico.

5. ILS investors reload, as ILS fund managers find post-event opportunities
   Investors in insurance-linked securities (ILS) and collateralised reinsurance investment funds are reloading in order to provide ILS fund managers with the necessary capacity to take advantage of attractively priced opportunities that have been presented in the wake of hurricanes Harvey and Irma.

6. Cat bond funds lower expectations of Irma losses
   As the magnitude of hurricane Irma’s impact to catastrophe bonds and the size of the eventual insurance and reinsurance loss became clearer yesterday, cat bond fund managers have reduced their expectation of suffering a major loss, with now just a handful of bonds thought most at risk.

7. Munich Re warns of Q3 loss on Harvey & Irma
   Global reinsurance firm Munich Re said yesterday that it anticipates falling to a loss in the third-quarter due to its losses from hurricanes Harvey and Irma, which suggests a loss to the company somewhere in the region of EUR 500 million to EUR 1 billion.

8. First PCS marine & energy ILW traded, Twelve Capital backs it
   The first marine and energy industry loss warranty (ILW) transaction has been traded using the PCS Global Marine and Energy non-elemental industry loss index service, with insurance and reinsurance linked investment manager Twelve Capital providing the capacity to back the deal.

9. Irma tests ILS, but opens up opportunities: Dirk Lohmann, Secquaero
   Anticipating rate movement post-Irma, Dirk Lohmann, chief executive of Zurich-based ILS fund manager Secquaero reveals the company is working with Schroders (its main backer) to come up “with additional offerings that are more focused on just the U.S. risk.”

10. NFIP or bust? The reinsurance layer certainly is, but once or twice?
    Estimates of losses to the National Flood Insurance Program (NFIP) from hurricanes Harvey and Irma’s flooding are on the rise, leaving the NFIP’s administrators with the difficult task of refunding the Program which is technically bankrupt and all but guaranteeing that the $1.024 billion reinsurance layer will payout.

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 32 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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