Archive for May, 2014

Reported insurance industry losses from the severe snowstorms which struck Japan in February have near doubled since our last update on the catastrophe event, now totaling nearly $2.5 billion according to the General Insurance Association of Japan.

The U.S. and state governments should take advantage of the current level of interest shown in insurance and reinsurance by the capital market to release risk held in residual markets and cede it to investors, according to ABIR President Bradley Kading.

More forecasts have been released for the 2014 Atlantic tropical storm and hurricane season in the last week, with a continued call for below average tropical activity levels but warnings that there is still the potential for significant impact and losses.

Governor of the Bank of England Mark Carney warned that insurers need to be accountable for their actions today and that the Bank of England is watchful of any risks from moves such as insurers or reinsurers adopting more aggressive investment strategies.

Global insurance and reinsurance broker Willis Group continues to build-out and strengthen its capital markets, insurance-linked securities (ILS) and investment banking unit Willis Capital Markets & Advisory (WCMA) with new hires.

U.S. insurer Allstate’s second visit to the catastrophe bond market in recent weeks to issue a new tranche of notes under its Sanders Re vehicle, Sanders Re Ltd. (Series 2014-2), is set to upsize while pricing on the notes has moved towards the top end of guidance.

Amlin plc, the non-life insurance and reinsurance group, believes it has avoided the worst of the softening rate environment thanks to its relationship with insurance-linked securities (ILS) and reinsurance-linked investments manager Leadenhall Capital Partners LLP.

U.S. primary and military mutual insurer USAA’s 22nd catastrophe bond issuance, Residential Reinsurance 2014 Ltd. (Series 2014-1), is progressing to market and is set to grow in size while pricing on each tranche of notes moves to the mid and upper end of guidance.

The Texas Windstorm Insurance Association (TWIA) is targeting $400m of fully-collateralized reinsurance protection on an annual aggregate basis from its first catastrophe bond, as part of a $1.35 billion layer of its reinsurance program.

The insurance-linked securities market continues to evolve and grow but what next and what issues may arise? This roundtable, titled ‘What is the future for ILS and is broader participation in new reinsurance areas appetising?’, discusses these questions and more.