Retrocession news

The insurance-linked securities (ILS) market needs efficient trapped capital solutions to provide greater certainty and understanding of capital flows and velocity in the space, with the absence of such solutions seen as a potential barrier to reigniting interest in the private and collateralized reinsurance side of the market.

The insurance industry loss from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns is estimated to be above the $1.5 billion of the Costa Concordia disaster, with as much as $4 billion in industry losses anticipated.

According to Artemis’ sources, Swiss Re now looks likely to make just under $151 million in reinsurance recoveries from its mortality catastrophe bonds, with a 100% recovery anticipated for the $120 million Vita Capital VI deal and a recovery already thought made under the Matterhorn Re mortality cat bond notes.

The reinsurance market is expected to bear the brunt of losses from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns, which rating agency AM Best said will add to the increasing challenges of reinsurance availability.

Capital continued to rotate from one insurance-linked securities (ILS) instrument to another in 2023, but AM Best analysis suggests some sectors may becoming better primed for growth through 2024.

Rating agency AM Best has explained that the expansion of named peril lists on reinsurance and retrocession arrangements at the January 2024 renewals, is not expected to make a material difference in terms of the risk covered.

According to Artemis’ sources, activity in the industry-loss warranty (ILW) market has increased in the last few weeks, as reinsurance and insurance-linked securities (ILS) markets prepare for what is anticipated to be an active 2024 Atlantic hurricane season.

The very strong execution of Hamilton’s second catastrophe bond saw the company securing more retrocession than originally targeted, at a far better price than had originally been forecast, which SVP Strategic Partnerships Hanni Ali said “underscores investor confidence” in the firm.

PGGM, the Dutch pension investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, ended 2023 with just over US $9 billion in ILS assets under management, as a slight uplift in capital deployed in euro terms and currency rates lifted AUM to a […]

The nascent cyber catastrophe bond and insurance-linked securities (ILS) market must grow to support the need for cyber insurance coverage, as traditional reinsurance risk tolerances are reached and the capital markets provides the perfect alternative, speakers at our recent ILS NYC 2024 conference explained.