Archive for February, 2016

Florida headquartered Heritage is set to secure $250m of reinsurance protection for its Heritage Property & Casualty Insurance and Zephyr Insurance Company subsidiaries from its new Citrus Re Ltd. (Series 2016-1) catastrophe bond transaction.

U.S. insurer Nationwide Mutual’s first visit to the catastrophe bond market in almost three years is looking promising for the firm, as it looks set to upsize the Caelus Re IV Ltd. (Series 2016-1) U.S. multi-peril cat bond to $300m at the low-end of initial price guidance.

Here are the ten most popular news articles, week ending 21st February 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

The transparency of the insurance-linked securities (ILS) market alongside comprehensive third-party models, and sector sophistication underlines its differences from sub-prime mortgages, according to Aon Securities Chief Executive Officer (CEO), Paul Schultz.

The Australian Reinsurance Pool Corporation (ARPC) has rejected including any retrocessional reinsurance capital from ILS or collateralised markets in its recent $2.9 billion program renewal, as they price the risk above the traditional market.

The date has now been set for the 2016 running of the Bermuda Convergence 2016 networking event, with the ILS Bermuda steering committee announcing that this year will see the event held in Hamilton, Bermuda on November 9th and 10th.

New York headquartered mutual fund manager Stone Ridge Asset Management, probably the fastest growing ILS and reinsurance fund manager in the market over the last few years, has revealed some interesting thinking about its new Post-Event fund.

Former Head of Capital Markets at insurance group AIG, Samir Shah, feels the insurance-linked securities (ILS) market’s efficiency would benefit from a single, credible rater of the risk.

Kinesis Capital Management Limited, the third-party capital and reinsurance-linked asset management division of insurer and reinsurer Lancashire Group Holdings, will provide its investors with an impressive 15% return for 2014 and roughly the same expected for 2015.

The challenges faced by traditional reinsurance firms are likely to “extend beyond a normal soft market cycle” as factors such as the growth of alternative capital, changes to the value-chain and higher regulatory costs all weigh on reinsurers, according to Fitch Ratings.