Archive for March, 2016

Insurance and reinsurance companies establishing their own insurance-linked securities (ILS) divisions has become a more common feature of the market as the asset class has evolved, leading executives at SIFMA to discuss the benefits of buy versus build, when considering entry into the ILS market.

Investors in the insurance-linked securities (ILS) space would benefit from improved, and more timely, disclosure of loss information relating to aggregate reinsurance transactions, according to speakers at SIFMA.

Three Argentinian enterprises have joined forces to develop climate index futures to help agricultural producers to better protect themselves against the impacts of severe or inclement weather, with drought the first targeted product launch.

Analysts at Keefe Bruyette & Woods (KBW) have joined the calls for further reinsurance rate declines at the next major renewals, at mid-year 2016 in June and July, highlighting the expected continuation of market pressures but also the possibility for increased demand.

Japanese primary insurance group Sompo Japan Nipponkoa Insurance is returning to the capital market in search of an expanded source of reinsurance protection for losses caused by Japan typhoons with a $175m Aozora Re Ltd. (Series 2016-1) catastrophe bond.

Economic losses caused by catastrophe and weather events in the U.S. in February 2016 are expected to surpass $1 billion, while the insurance and reinsurance industry will deal with losses “well into the hundreds of millions (USD)” according to broker Aon.

Industry loss warranty (ILW) focused reinsurance broker Stefano Nicolini has left BMS Group, after almost six years with the firm, and moved to independent reinsurance intermediary Beach & Associates.

The Texas Windstorm Insurance Association (TWIA), the residual market or last-resort property insurer for Texas, is planning to reset its Alamo Re catastrophe bonds to fit within its 2016 program, as it plans an increase in its reinsurance retention.

Capital markets investors increasingly view the features and structures of the insurance-linked securities (ILS) sector as a more mature asset class, according to K2 Advisors Jonathan Malawer, underlining the potential for further market expansion as ILS acceptance grows.

Re/insurance group MS Amlin plc has reported a considerable increase in the premiums it underwrites on behalf of specialist insurance and reinsurance linked investment manager Leadenhall Capital Partners LLP, with £34.9 million underwritten for Leadenhall ILS funds in 2015.