Archive for October, 2017

Catastrophe risk modelling firm RMS has estimated the economic costs of the wildfires in the wine region of California as between $6 billion and $8 billion, explaining that the high penetration rates of wildfire insurance coverage means that the industry loss is expected to be similar.

Markel CATCo Investment Management Ltd., the collateralized reinsurance and retrocessional investment fund manager, has raised over $1.8 billion of new capital from investors to ensure continuity for its ceding clients and meet renewal demand for its products.

Here are the ten most popular news articles, week ending 29th October 2017, 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.

After the impacts of recent catastrophe events in the U.S. and the Caribbean, reinsurers are hoping for high rate increases at the upcoming January 1st, 2018 renewal season, however, companies are unlikely to get what they want, according to JLT Re’s Global Head of Analytics, David Flandro.

Reinsurance capital has played a significant role in helping primary insurance giant and specialist reinsurance player Chubb to manage the impact of recent major catastrophe events, with the company managing to claim back around $1.1 billion from its reinsurance partners reducing its near $3 billion gross cat loss down to $1.9 billion.

Catastrophe risk modelling specialist AIR Worldwide has issued an estimate of insurance and reinsurance industry losses from wildfires in the northern areas of California, saying that the bill for the sector is likely to be from $2 billion to as much as $3 billion.

XL Catlin and its subsidiaries latest catastrophe bond, the $150m Galileo Re Ltd. (Series 2017-1) transaction, having been the first to market following the recent hurricanes is a good test of investor appetite and while investors are keen to take on more risk the coupon shows that this is not at any cost.

The entry of the capital markets and their growth into the reinsurance industry has increased the sectors “capital elasticity” resulting in a softening of the reinsurance cycle, according to global reinsurer PartnerRe.

Reinsurance group Validus Holdings reported its third-quarter earnings yesterday, providing an insight into the impact that insurance-linked securities (ILS) fund managers have experienced from recent catastrophe events and the support that ILS capital will give to pay hurricane losses.

Early estimates for the bill facing the insurance and reinsurance industry from the devastating California wildfire outbreaks are coming in around a range from $5 billion to $8 billion, according to executives at Aon Benfield.