Archive for May, 2017

Floridian primary insurer Avatar Property and Casualty Insurance Company’s first catastrophe bond issuance has now shrunk slightly before final pricing, with the Casablanca Re Ltd. (Series 2017-1) transaction now set to secure $87.7 million of reinsurance coverage for the firm.

UK headquartered life and annuities insurance and reinsurance company Legal & General has hired Pretty Sagoo from Deutsche Bank to the role of Head of the Strategic Business in its pension risk transfer team.

The Texas Windstorm Insurance Association’s (TWIA) latest Alamo Re Ltd. (Series 2017-1) catastrophe bond is now set to achieve its upsized target of $400 million, while at the same time the cost of the reinsurance coverage looks particularly efficient with pricing of the coupon now fixed at below guidance.

Price guidance has been reduced on the two higher risk tranches of notes to be issued in Floridian primary insurer Avatar Property and Casualty Insurance Company’s first catastrophe bond issuance, the $100 million Casablanca Re Ltd. (Series 2017-1) transaction.

The Weather Company has revised its forecast for the 2017 Atlantic tropical storm and hurricane season, saying that the latest indications and data now suggest a year with activity levels a little above average.

The Denver, Colorado hail storm that struck the Front Range are on May 8th 2017 is expected to be the most costly insured loss in the state’s history, with the insurance and reinsurance industry estimated to be on the hook for $1.4 billion of losses.

The insurance and reinsurance market loss from the 2010/11 Canterbury, New Zealand earthquakes continues to increase, with insurer Tower Group again reporting further loss creep yesterday and the industry total now estimated at $21 billion by the Insurance Council.

The Florida Hurricane Catastrophe Fund (FHCF) may buy reinsurance at a lower attachment point of $10.5 billion, to protect itself against losses from the 2017 tropical storm and hurricane season, as its trustees expressed a preference for moving the risk transfer down the tower compared to prior years.

The recently completed $925 million Ursa Re Ltd. (Series 2017-1) catastrophe bond, which is the largest transaction to-date sponsored by the California Earthquake Authority (CEA), had a novel structural feature that will help the insurer tap ILS investor demand in a more timely and cost-efficient manner, according to reinsurer Swiss Re.

The continued growth of the insurance-linked securities (ILS) and alternative reinsurance capital market underlines the sophistication and willingness of its investor base, but new risk premium is required for the sector to expand further, finds a new report.