Best of Artemis, week ending 21st August 2016

Here are the ten most popular news articles, week ending 21st August 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.

Top ten most viewed articles on Artemis.bm, week ending 21st August 2016:

1. Expect re/insurers to keep writing, even below cost-of-capital: Glaser, MMC
   Marsh & McLennan President & CEO Dan Glaser said it plainly during the insurance, reinsurance broking and advisory giants Q2 earnings call. In a soft market insurance and reinsurance firms are likely to keep underwriting even when returns are below their cost-of-capital.

2. Nephila & Credit Suisse syndicates show attractiveness Lloyd’s: Aon
   Alternative reinsurance capital continues to enter the Lloyd’s of London marketplace via Special Purpose and full syndicates, according to Aon Benfield. Underlined by the establishment of syndicates from ILS players Nephila and Credit Suisse, which provided a combined capacity of £212 million in 2016.

3. Reinsurance faces the strongest headwinds: RBC
   Of all the segments within the insurance and reinsurance market, it is the reinsurers that analysts at RBC Capital Markets believe face the strongest headwinds still, as indicated by some companies higher than expected combined ratios at the mid-year point.

4. Reinsurers utilising ILS & retro to mitigate profit deterioration: S&P
   The persistent inflow of alternative capital in the global reinsurance industry has enabled reinsurers to adjust their risk transfer strategies, as companies look to offset continued, and potentially damaging profitability deterioration, says Standard & Poor’s (S&P).

5. Lottoland renews €100m collateralized jackpot re/insurance cover
   The Lottoland Group, a young but fast-growing Gibraltar licensed online lottery provider, has renewed its collateralized jackpot winnings insurance protection with the help again of inea GmbH, a German firm that structures and offers investment opportunities including insurance- or reinsurance-linked securities (ILS).

6. Fort McMurray wildfire insurance loss up slightly to C$4.7bn: PCS
   Property Claim Services (PCS) has increased its estimate for the insurance industry loss from the Fort McMurray, Alberta Canada wildfires, slightly from C$4.63 billion to C$4.67 billion, which is approximately US$3.63 billion.

7. Public-private sector support to boost innovation & demand: Munich Re
   To combat the pressure from challenges facing the global reinsurance industry, as competition, the low interest rate environment and headwinds limit growth & erode returns, participants should look to partnerships and innovation as a way to stimulate demand.

8. Favourable cat bond & ILS structural trends from H1 2016: GC Securities
   A range of structural trends were evident in the first-half of 2016 that have benefitted cedents in the catastrophe bond and insurance-linked securities (ILS) market, according to analysis from GC Securities.

9. Collaboration key in creating, maintaining Bermuda’s ILS industry: BDA
   Collaboration between the Bermuda government and a range of local service providers has enabled the island to become a leading domicile for insurance-linked securities (ILS) business, according to the Bermuda Business Development Authority (BDA).

10. B.C. seeks rapid paying infrastructure insurance against quakes
    British Columbia (BC), the westernmost province in Canada, has identified a need to develop a fast-response insurance solution to protect vital infrastructure in the event of an earthquake, and has already started working with reinsurers.

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 22 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’ Q2 2016 Catastrophe Bond & ILS Market Report – A quiet quarter fails to keep up with investor demand

We’ve now published our Q2 2016 catastrophe bond & ILS market report.

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

Q2 2016 issuance failed to hit $2 billion, with just $1.624 billion of new risk capital issued from 14 transactions. This is the first time since 2011 that Q2 issuance has failed to reach $2 billion.

Download your copy here.