Archive for November, 2016

American Strategic Insurance Group has returned to the catastrophe bond market seeking a $200 million source of capital market backed reinsurance protection for U.S. named storm and severe thunderstorm risks from a Bonanza Re Ltd. (Series 2016-1) deal.

Dedicated catastrophe funds and institutions continue to provide the majority of capacity to the ILS space while hedge funds have also increased their market share in recent times. At the same time, the geographical mix of the investor base in 2016 varies greatly from the previous year, according to Aon Benfield.

Bermuda-based insurance and reinsurance firm Everest Re is “looking forward” to increasing the size of its third-party investor backed collateralized reinsurance vehicle Mt. Logan Re as it seeks to take advantage of ongoing investor interest.

Florida headquartered primary insurance company Universal Insurance Holdings has added an additional layer of protection against catastrophe losses, in the form of a risk-linked contract which appears to be parametric in nature.

The continued growth and expansion of its insurance-linked securities (ILS) and reinsurance linked investments business is one of the bright spots at re/insurer Hiscox Group, while its experience in the London market is less to write home about.

The numerous challenges and hurdles facing global insurers and reinsurers suggests the market needs to evolve at a faster rate than it has historically, and the future of the industry lies somewhere between the traditional and alternative model, according to John Charman.

Here are the ten most popular news articles, week ending 6th November 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.

According to a filing on the Tel Aviv Stock Exchange, the insurance claim for the destruction of an Amos 6 satellite, owned by Israel based company Space Communications, will total $196 million, perhaps lower than some of the initial loss estimates.

The insurance-linked securities (ILS) market is poised for future growth as the demand for risk transfer across the world is expected to increase, while the sophistication of the market and its investor base suggests it’s no longer a niche asset class, according to a number of ILS fund managers.

During results season the impacts and effects of a softened reinsurance market rear their head across the market and brokers are not immune, with Willis Towers Watson reporting that a “dramatic” slowing of capital markets transactions hit a key business units revenue.