Best of Artemis, week ending 25th February 2018

Here are the ten most popular news articles, week ending 25th 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.

Ten most viewed articles on Artemis.bm, week ending 25th February 2018:

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

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

3. Nuclear liability risk ILS transactions upsized for 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.

4. Bermuda regulator looks for greater clarity on ILS underwriting
   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.

5. United shifts quota share to Munich Re, TransRe and Gen Re
   United Insurance Holdings (UPC Insurance) announced during its fourth-quarter 2017 earnings call that it changed its panel of reinsurers for its quota share, to reinsurance giant Munich Re, Transatlantic Reinsurance Company (TransRe), and General Reinsurance Corporation (Gen Re).

6. Caelus cat bond losses expanding as Nationwide’s aggregates grow
   A second tranche of U.S. primary insurer Nationwide Mutual Insurance Company’s catastrophe bond has now been triggered as its aggregated natural catastrophe losses have eaten further into the capital market backed reinsurance provision that the $375 million Caelus Re V Ltd. (Series 2017-1) catastrophe bond provides.

7. Rosh Capital preparing for investment-oriented reinsurer launch
   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.

8. Swiss Re / SoftBank, XL / Allianz – scale, relevance & transformation
   Two very interesting (in their own ways) insurance and reinsurance deal rumours were revealed last night, as news broke that Japanese technology conglomerate SoftBank is considering taking a large stake in Swiss Re, and that Allianz is looking at a deal with Bermudian giant XL Group.

9. AXIS’ premiums ceded to capital partners near $500m, fees earned hit $36m
   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.

10. Time to get used to lower property catastrophe margins: Swiss Re CEO
    The reinsurance industry has to get used to the fact that we are now in a world where underwriting margins for property catastrophe business are lower and likely to stay that way, thanks to the influence of ILS and alternative sources of capital, according to Swiss Re CEO Christian Mumenthaler.

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 27 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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