Archive for March, 2017

Fidelis Insurance, the dual underwriting and investment-oriented insurance and reinsurance firm launched by Richard Brindle, is to secure access to property catastrophe reinsurance business from the Lloyd’s market through a quota-share arrangement with Novae Group.

Sompo Holdings has now completed its acquisition of Bermudian insurance and reinsurance group Endurance and as a result becomes the owner of specialist catastrophe insurance and reinsurance linked investment manager Blue Capital Management Ltd.

J.P. Morgan has agreed a settlement of legal cases related to its management of the investment accounts for the Scottish Re life insurance securitization transactions issued by Orkney Re II Ltd. and Ballantyne Re plc, with a cash payout of $400 million now expected.

Hedge fund reinsurance firms have largely failed to produce the investment returns expected of them over the last few years, as financial market jitters hit their portfolios, but for A.M. Best the underwriting is key no matter the desire to produce a total-return.

“We are transitioning into a risk knowledge company that invests into risk pools with long-term growth potential,” explained Swiss Re Group CEO Christian Mumenthaler in the reinsurance firms recent annual report.

In response to the new Continuous Mortality Investigation (CMI) model, recent reductions seen in national mortality improvements can no longer be regarded as a “blip” and have put the pension longevity swap and reinsurance market into a state of flux, according to Aon Hewitt.

The global insurance and reinsurance industry suffered $54 billion of losses in 2016, according to the latest data from Swiss Re’s sigma unit, with the United States leading the way due to a record number of severe convective storm events.

Severe tropical cyclone Debbie struck northern Queensland in recent hours, with a landfall featuring 260kph wind gusts, storm, surge and torrential rain. A catastrophe has been declared for the region, but in the hours prior to landfall re/insurers were preparing for the impact and sources suggest the live-cat market woke up.

Security First Insurance Company is returning to the insurance-linked securities (ILS) market with its second transaction, seeking $150 million of fully-collateralized reinsurance protection from the capital markets through a First Coast Re Ltd. (Series 2017-1) issuance.

The UK’s vote to leave the European Union will not impact Gibraltar’s insurance-linked securities (ILS) offering to EU ceding insurers, and the region’s relationship with the UK’s financial services business is positive for both London’s and Gibraltar’s ILS ambitions, according to industry experts.