Archive for October, 2016

Hurricane Matthew has the potential to be a significant loss event for the insurance and reinsurance industry. It could also cause issues to some catastrophe bonds, eroding aggregate retention and increasing their attachment probabilities, according to Ben Brookes of RMS.

The cat bond lite, or private cat bond sector continues to evolve as the size of transactions increase and issuance levels remain strong in 2016, underlining the value of the space for both investors and sponsors, reveals PCS.

The so-called “live cat” market has come to life, albeit perhaps tentatively, as hurricane Matthew’s approach towards the U.S. has increased the certainty of what looks set to be a relatively major impact (at this time) with a number of ILW’s trading and as much as $100m of limit placed, Artemis understands.

Demonstrating the significant lack of earthquake insurance in Italy the first insurance industry loss estimate from PERILS AG for the event suggests an insured loss of just EUR34m, which is a paltry amount of property insurance loss for such a damaging event.

Endurance Specialty Holdings Ltd., Bermuda-based property and casualty insurance and reinsurance firm and owner of collateralised reinsurance and ILS fund manager Blue Capital Management Ltd., has been acquired by Sompo Japan for a total consideration of $6.304 billion.

At this time the catastrophe bond market has not shown a significant reaction to the slow approach of hurricane Matthew towards the U.S. coastline, despite the fact that the forecast path has been shifting steadily nearer to Florida with each NOAA update and now a hurricane watch has been announced.

The ability to innovate and adapt to the changing risk landscape and disruptive forces reshaping the global economy is becoming ever more important for insurers and reinsurers, according to Victoria Carter, Vice Chairman of International Operations at Guy Carpenter.

AXA Investment Managers (AXA IM), the global asset management unit of AXA Group, has consolidated its alternative investment and structured solutions teams into a single global alternative credit platform, which includes its insurance-linked securities (ILS) investment team.

The importance of robust administration, oversight and valuation of insurance-linked securities (ILS) funds, particularly those investing in hard-to-value private ILS transactions, cannot be overstated, according to Horseshoe Group and IKONIC.

The launch of Oortfolio™, a liability insurance risk modeling platform from Praedicat, could stimulate innovation in liability insurance risk transfer, such as attracting new capital by enabling it to better quantify liability exposures and even liability catastrophe bonds.