Archive for December, 2016

Analysts at Deutsche Bank have joined the camp expecting reinsurance pricing will continue to deteriorate into 2017, citing the structural issue of continuing overcapacity in an environment where major losses are scarce and investment yields remain low.

Bermuda based insurance and reinsurance group Enstar has launched a new $620m total return reinsurer named KaylaRe Ltd., alongside investment manager Hillhouse Capital Management, Ltd. and financial services equity investor Stone Point Capital LLC.

It’s that time of year when the secondary trading market for catastrophe bonds tends to see volumes rise in short-dated names, as insurance-linked securities (ILS) fund managers and investors look to offload cat bonds that are maturing soon to free up capital for reinvestment.

Insurance and reinsurance industry losses from natural catastrophes and man-made disaster events during 2016 are expected to come out at around $49 billion by Swiss Re, up by 33% on 2015 but slightly below the 10-year average.

French reinsurance company SCOR has announced the issuance of a new three-year contingent capital facility that will provide the company with EUR 300 million of cover against losses from natural catastrophe and extreme mortality events.

As of December 1st 2016 the California Earthquake Authority (CEA) has grown the size of its reinsurance program to $5.4 billion, an increase of 20% since April 2016 when the program was $4.5 billion in size, and with catastrophe bonds now contributing over 21% of its risk transfer.

Analysts at RBC Capital Markets expect European reinsurers to experience further price declines at the start of 2017, but also sees some opportunity for more attractive returns in tailored solutions, an area that is likely to witness increased demand.

Simon Kirby, Economic Secretary to the Treasury (City Minister) at HM Treasury, has stressed that the UK government’s proposed insurance-linked securities (ILS) regulations can help the London insurance and reinsurance market maintain its competitive edge.

Bermuda headquartered reinsurance group RenaissanceRe Holdings Ltd. has announced a number of senior executive changes, one of which will see the companies Ventures unit President Aditya Dutt also taking on the role of RenRe Treasurer.

The trend of insurance and reinsurance linked investment managers looking to access returns through insurance private debt provision continues, with two ILS managers leading a $79.5 million private debt issuance for U.S. primary property and casualty insurance group Heritage Insurance Holdings, Inc.