Best of Artemis, week ending 24th September 2017

Here are the ten most popular news articles, week ending 24th 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 24th September 2017:

1. Mexico City hit by deadly M7.1 quake, causes significant property damage
   Mexico was hit by another major earthquake this week. The magnitude 7.1 temblor struck at 18:14:39 UTC (13:14 local) on Tuesday 19th September, with the epicentre near Atencingo in Puebla state, 75 miles from Mexico City. Extensive damage has been reported to buildings.

2. Industry loss warranty (ILW) payouts could be in the billions
   According to market sources, both traders and ILS fund managers, following the impacts of hurricanes Harvey and Irma a number of industry-loss warranty (ILW) contracts are expected to payout, with the total at risk seen as in the billions.

3. Safepoint’s Manatee 2016-1 cat bond facing hurricane Irma loss
   According to sources, an event notice has been filed on behalf of Safepoint Insurance Company, the sponsor of the Manatee Re Ltd. (Series 2016-1) catastrophe bond, revealing the initial estimate of the insurers hurricane Irma losses that qualify under the terms of the cat bond and the level reported suggests a loss for the bonds holders.

4. Reinsurance pricing won’t improve until alternative capital retreats: Peel Hunt
   Alternative, or non-traditional reinsurance capital has continued down its impressive growth path in 2017, but until some of this capacity retreats from the global reinsurance sector the industry is unlikely to see any improvement in the rating environment, according to Peel Hunt analysts.

5. Reinsurer profit warnings begin with Hannover Re
   The first full-year profit warning from a major reinsurance firm has been issued this morning by Talanx owned, German headquartered global player Hannover Re, which said the combined losses from recent catastrophe events could surpass its major loss budget.

6. Reinsurers should tap alternative capital before equity raising: Morgan Stanley
   Following the impacts and losses from hurricanes Harvey and Irma some reinsurance firms may find their earnings depleted and shares trading below book-value, but rather than looking to equity raising to help them through, reinsurers should tap into alternative capital, according to analysts at Morgan Stanley.

7. Hurricane Irma insurance industry loss up to $55bn: RMS
   The insurance and reinsurance industry loss due to the impacts of hurricane Irma on the Caribbean islands and the United States is estimated to be up to $55 billion by catastrophe risk modeller RMS, with economic losses expected to be up to $95 billion.

8. Fragmented market complicates Irma loss: SCOR’s Victor Peignet
   In an interview with Artemis at the 2017 Monte-Carlo Reinsurance Rendez-vous, Victor Peignet, Chief Executive Officer (CEO) of SCOR Global P&C, discussed the potential but uncertain impact of hurricane Irma on the softening market, and also what it might mean for the alternative reinsurance capital space.

9. Markel CATCo warns Harvey & Irma could erase 2017 performance
   Markel CATCo Investment Management has delivered a warning to investors in its flagship listed CATCo Reinsurance Opportunities Fund Ltd. that full-year performance could be erased by the impacts of recent major catastrophe events.

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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