Archive for February, 2015

Fitch Ratings said yesterday that while it maintains a stable rating outlook on reinsurers, the global reinsurance sector outlook is still negative and as a result the firm expects further deterioration of profitability for Bermudian reinsurers while market pressures continue.

While some areas of the mainstream media and certain financial experts continue to describe catastrophe bond investors as yield hungry, this simplistic view ignores the benefits the insurance-linked asset class can bring to a portfolio.

Increasing merger and acquisition (M&A) activity amongst insurers and reinsurers, at a time of ongoing reinsurance market competitive pressures calls for greater caution, according to Deutsche Bank Markets Research.

Cyclone Marcia has undergone a period of rapid intensification as it approaches the Queensland, Australia coastline, with forecasters now predicting a Category 5 landfall with wind gusts as high as 180mph anticipated.

Challenge and its variations are words used frequently in the Swiss Re annual results documents and letters to shareholders. The reinsurance firm clearly feels the market pressures, as all reinsurers do, but it feels well positioned to meet one challenge in particular, that posed by abundant capital.

Swiss Re, the second largest global reinsurance firm, has reported lower profits in the fourth-quarter of 2014 as the firm suffered a hit due to certain restructuring in its life and health business, the firm also cited a challenging January renewal season.

PERILS AG, the Swiss headquartered provider of industry-wide European catastrophe exposure, industry loss data and indices, has released its first estimate for the 2014/15 season, with an estimate of €328m for European windstorms Elon-Felix.

U.S. primary insurer Chubb has returned to the catastrophe bond market to sponsor a $225m East Lane Re VI Ltd. (Series 2015-1) multi-peril transaction. For the 2015 deal the insurer has taken a leaf form USAA’s book, including volcanic eruption and meteorite impact risks in the deal.

Investors in the CATCo Reinsurance Opportunities Fund Ltd. are likely to benefit from side-pocket loss reserve releases related to superstorm Sandy and hail events in 2015, as prudent reserving practices look set to enhance returns for 2015.

In light of the recent January 1st 2015 renewal season, greater ‘client relevant’ reinsurers stood to benefit as competition and excess capital persisted, according to multinational financial services corporation, Morgan Stanley.