Archive for November, 2015

Being able to entertain large business lines and influence transactions in testing times has driven reinsurance industry consolidation, as global players look to increase in size, says A.M. Best’s Robert DeRose, but that doesn’t mean smaller reinsurers can’t be meaningful.

Institutional investors, such as pension funds, who have been questioning whether now is the time to invest in insurance-linked securities (ILS) and other reinsurance linked investments, should take a “toe in the water” approach and make an allocation now, according to Aon Hewitt.

International insurance industry research body and think tank, The Geneva Association (GA), has reported that 68 traditional insurance and reinsurance firms have shown their commitment to manage and reduce global risks associated with climate change.

Specialist London headquartered insurance and reinsurance company Beazley has launched a new product for the Australian market called Weather Guard, which offers businesses a way to acquire protection against specific weather exposures.

An increasing number of large pension funds are expected to invest directly in the insurance-linked securities (ILS) asset class and this will be a big component of the ILS markets future growth, according to Paul Schultz of Aon Securities.

One of the final hurdles has been overcome and PartnerRe looks set to become the reinsurance arm of Italian investment holding company EXOR S.p.A after the reinsurers shareholders approved the acquisition at a meeting in Bermuda today.

The persistent inflow of alternative reinsurance capital in the overall market has created a competitive environment that forced traditional players to adapt to survive, but it’s important for market players to continue the path of evolution, particularly in emerging risks and markets.

Specialist insurance and reinsurance linked investment manager Leadenhall Capital Partners LLP has added two new hires to its portfolio management team, strengthening both non-life and life teams, while also reaching a new milestone for ILS assets under management at $2.25 billion.

Further to yesterdays update to U.S. military mutual insurer USAA’s Residential Reinsurance 2015 Ltd. (Series 2015-2) catastrophe bond deal, which saw the transaction price guidance narrow, it’s now emerged that the deal has upsized to $125 million.

Parametric triggers have been in use in catastrophe insurance and reinsurance for decades now, but still some cedents, underwriters and even ILS investors continue to feel the need to match the trigger to an insurable interest.