Archive for June, 2015

Discussion of alternative capital’s presence in the global insurance and reinsurance sector sparks varied industry opinions, but for XL Catlin CEO Mike McGavick it’s essential that the additional capacity feels at home in the space.

Issuance of new catastrophe bonds and other insurance-linked securities (ILS) recorded in the Artemis Deal Directory in 2015, has now reached an impressive $5.224 billion, with $3.162 billion in the second quarter alone.

The equity analysts who track the insurance and reinsurance sector are beginning to show a little divergence in their opinion of who will win the ongoing M&A tussle, with KBW’s analysts coming out in favour of AXIS Capital sealing its deal to amalgamate with PartnerRe.

The mortality expectations of Canadian pension plans are set to be amended after a study by the Office of the Chief Actuary (OCA) showed that mortality rates are on the decline, leading to increases in life expectancy and longevity risk assumptions.

An interesting $200m catastrophe bond named Acorn Re Ltd. (Series 2015-1) has launched to the market Artemis understands, bringing U.S. earthquake risks focused on the west coast and featuring a parametric trigger.

The Financial Times has reported that Bermudian reinsurance firm Arch Capital Group is considering a $6.56 billion, $65 per share, bid for AXIS Capital, threatening to gate crash the M&A tussle that has been ongoing for the last few weeks.

After having met with members of EXOR’s management yesterday to gain clarification on the process and deal metrics for the proposed acquisition of reinsurance firm PartnerRe, Macquarie analysts now feel EXOR has an improved chance of sealing the deal.

As expected the Jardine Lloyd Thompson Capital Markets (JLTCM) team has announced completion of another private catastrophe bond and this new deal is the team’s largest Market Re deal to date, a $70.509m Market Re Ltd. (Series 2015-2).

As Fidelis Insurance Holdings, the new hybrid underwriting and investment-oriented insurance and reinsurance firm, builds traction and when the market opportunity is right, the company can be expected to work with third-party capital, according to CEO Richard Brindle.

The involvement of the U.S. government in provision of terrorism insurance, through the Terrorism Risk Insurance Program under TRIA, limits traditional and alternative reinsurance capital’s ability to play a meaningful role, according to the Congressional Budget Office (CBO).