Archive for April, 2015

North American commercial property rates are predicted to fall by between 12.5% – 15% throughout the rest of 2015, as ample capacity and low levels of catastrophe losses aggravate current insurance and reinsurance market trends, according to Willis Group.

The U.S. Treasury Internal Revenue Service has now published a draft rule (link to the draft at the bottom) on the perceived tax issue associated with hedge fund reinsurance strategies, but is asking for comments and feedback to help it ensure it accurately identifies those taking advantage of any loophole.

CEO and Chairman of the Board of the world’s largest reinsurance firm Munich Re, Nikolaus von Bomhard, said in a speech today at the reinsurers AGM that the current pressures on reinsurance margins look set to continue, with “no sign of this changing.”

Evan Greenberg, CEO of global insurance and reinsurance firm ACE Limited, said that the new joint-venture backed, captive-style reinsurer ABR Re will purely be a capacity player, following the reinsurance market’s terms.

inea GmbH, a German firm that structures and offer investment opportunities including insurance-linked securities (ILS), has completed a new lottery winning risk collateralized reinsurance transaction, which has become the first ILS deal to be domiciled in Gibraltar.

As expected the insurance industry loss estimate for the east coast low pressure storm that has affected New South Wales, Australia, particularly the Sydney area, has risen overnight, from the AUD$129m reported yesterday to now stand at AUD$161m.

The Massachusetts Property Insurance Underwriting Association (MPIUA) latest catastrophe bond  Cranberry Re Ltd. (Series 2015-1) has upsized by 50%, growing to $300m before close, while the pricing settled at the low-end of guidance.

U.S. primary insurer Travelers is back in the catastrophe bond market for the first time in two years with a $200m Long Point Re III Ltd. (Series 2015-1) deal, seeking fully-collateralized reinsurance coverage for multiple U.S. perils.

Global investment firm Bernstein has advised investors to be cautious of reinsurance, as the sector continues to fill with alternative sources of capital, and remains rife with competition, including from insurance-linked securities.

TigerRisk Partners LLC has added its second high-profile hire in a week, announcing that reinsurance and ILS focused broking veteran Paul Karon is joining the capital agnostic reinsurance brokerage as Vice Chairman.