Best of Artemis, week ending 23rd October 2016

Here are the ten most popular news articles, week ending 23rd October 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 23rd October 2016:

1. Hanjin re/insurance loss could be half a Tianjin ($2bn): Credit Suisse
   The insurance and reinsurance sector could ultimately face a loss of as much up to $2 billion due to the financial collapse and bankruptcy of Hanjin Shipping this year, according to analysts at Credit Suisse. If that size of loss manifests, it has the potential to seep through to ILS funds investing in specialty risks.

2. Global re/insurers to build blockchain retrocession proof-of-concept
   Global insurance and reinsurance players Aegon, Allianz, Munich Re, Swiss Re and Zurich have teamed up to collaborate on developing and proving the use of blockchain distributed ledger technology and smart contracts within the industry, beginning with a retrocession proof of concept.

3. South Korean pension selects LGT, Leadenhall, Nephila for ILS mandate
   South Korea’s Public Officials Benefit Association, the pension fund manager for government workers pensions and among the largest public pensions in the world at over US$7 billion in assets, has selected LGT ILS Partners, Leadenhall Capital Partners and Nephila Capital for its first ILS mandate.

4. Insurtech to boost importance of reinsurance capital
   One of the side-effects of the disruptive Insurtech wave, that is rippling through insurance and reinsurance markets, is an expectation that it will help to boost the importance of reinsurance capital, as it supports new business models and backs technology start-ups.

5. ILS funds face minimal realised loss, some writedowns on Matthew: Milliman
   The impact of hurricane Matthew on insurance-linked securities (ILS) players will vary by fund, but could result in minor negative hits to returns during October, according to analysis from Milliman’s Aaron Koch.

6. Reinsurer combined ratios, RoEs to deteriorate further in 2017: Fitch
   Further profit deterioration is expected for the reinsurance sector in the coming months as ample capacity and a return to more normalised loss activity exacerbates the effects of price softening, driving firms into specialty lines, according to Fitch Ratings.

7. Hurricane Matthew to test Florida start-up’s reinsurance: A.M. Best
   Hurricane Matthew’s impact on Florida and the resulting insurance losses will provide a measure of the states start-up carriers reinsurance arrangements, catastrophe preparedness and ability to respond to major loss events, according to A.M. Best.

8. Verto Syndicate 2689 aims to ease private capital access to Lloyd’s
   Verto Syndicate 2689, a newly approved “in principle” Lloyd’s of London syndicate, aims to ease access to the returns of Lloyd’s underwriting business for private capital investors through proportional quota share reinsurance of other syndicates.

9. Nephila & Velocity approved for fourth Florida Citizens takeout
   ILS, catastrophe and weather risk-linked investment fund manager Nephila Capital is set to participate in another takeout of insurance policies from Florida’s Citizens Property Insurance Corporation, alongside its MGA, Velocity Risk Underwriters LLC.

10. Mitsui takes stake in ILS manager New Ocean, invests $100m in funds
    Japanese conglomerate Mitsui & Co., Ltd. has completed the recent acquisition of a 15% stake in Bermuda domiciled ILS and reinsurance linked asset manager New Ocean Capital Management Limited (New Ocean) and has made a $100 million commitment to the managers funds.

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’ 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.