Archive for November, 2014

Munich Re, the world’s biggest reinsurance firm, sees an opportunity to leverage alternative reinsurance and ILS capital, from institutional investors such as pension funds, to help it grow and address high severity risks which require significant capacity.

Reinsurance buyers use of insurance-linked securities (ILS), instruments such as catastrophe bonds and other collateralized reinsurance structures, are approaching a saturation point in mature markets such as Florida, according to Validus CEO Ed Noonan.

London and Bermuda listed, Montpelier Re operated, reinsurance and ILS linked Blue Capital Global Reinsurance Fund, is planning to raise new capital from investors with a new placing of shares that is anticipated to close in the fourth-quarter.

Florida Citizens takeout insurer Heritage Insurance Holdings reaped the benefits of being a first time catastrophe bond sponsor this year, with its two cat bond issues through Citrus Re Ltd. lowering its cost of reinsurance protection.

The world’s largest reinsurance company Munich Re reported that its target for full-year profitability remains on track for 2014 despite the continued “intense competition” in the market, as low levels of losses boosted its income for the third-quarter.

As the reinsurance market becomes ever more competitive, as increasing amounts of third-party, lower-cost and ILS capital seek to access the market alongside excess-levels of traditional capital, expense management and all-round efficiency is growing in importance.

Specialty insurance and reinsurance company Lancashire Holdings reported a growing contribution from its third-party reinsurance capital unit Kinesis Capital Management this morning, as its share of Kinesis’ profits and corresponding fee income grew.

Bermuda-based reinsurer and third-party reinsurance capital management specialist RenaissanceRe has maintained its disciplined approach to the challenging reinsurance market, pulling back on catastrophe business, while growing other lines.

German reinsurer Hannover Re is the first of the top-tier reinsurance firms to report its quarterly results this morning and says that it expects reinsurance rates will largely stabilise at the coming key January 2015 renewal season.

A new firm, named Vario Partners, is launching to advise on and facilitate the bringing together of portfolios of insurance risk and the capital markets through securitisation (ILS), with three founding employees all hailing from PwC backgrounds.