Archive for October, 2017

The Credit Suisse Asset Management (CSAM) insurance-linked strategies team and sub-advisor ILS Investment Management (ILSIM) are in the process of raising a second ILS fund focused on property and casualty run-off opportunities, with filings showing around $282.5 million successfully raised of a targeted maximum of $800 million.

A new listed insurance-linked securities (ILS) and collateralized reinsurance investment vehicle, Insurance Income Strategies Ltd., is being marketed to investors with backing from 1347 Advisors and Kinsgway Financial, while a relationship with ILW specialist reinsurance fund manager Cartesian Re is set to assist with sourcing investment opportunities.

According to Artemis’ market sources, an estimate of sponsor Argo Group’s losses suggests that the re/insurers Loma Reinsurance (Bermuda) Ltd. (Series 2013-1) multi-peril catastrophe bond has been triggered, with one tranche of notes likely to payout in full and another likely impaired.

The ILS fund market is going to suffer its largest draw-down on record for the month of September 2017 and the full-year is set to be the worst year on record for insurance-linked securities (ILS) investments, after the impacts of recent major hurricanes and other catastrophe losses.

In an interview with Artemis, Sarah Demerling and Sherman Taylor of Estera Services (Bermuda) Limited, discussed the cat bond lite sub-sector, its impact on Bermuda, and how the island facilitates the issuance of the smaller, yet growing sub-sector of the global insurance and reinsurance linked securities (ILS) space.

Fronting and program service insurance specialist State National Companies has again increased the volume of business being underwritten through its Program Services division, as it writes an increasing amount of business for reinsurance capital providers, including no doubt for insurance-linked investment fund manager Nephila Capital.

The ability of the Lloyd’s of London insurance and reinsurance market to recapitalise could be threatened if there are further major losses over the remainder of this year, according to analysts at Fitch Ratings who maintain a negative outlook on Lloyd’s ratings.

Welcome to the second Artemis Monte Carlo Reinsurance Rendezvous Roundtable, in which participants discussed the potential impacts of recent catastrophe events on the insurance-linked securities (ILS) sector’s investor base, and the broader marketplace, as well as emerging trends and challenges as the January renewal season fast approaches.

Risk  modelling company AIR Worldwide has announced the launch of an inland flood risk model for Japan, as well as updates to its Japan typhoon risk model, both of which will be useful to reinsurance and ILS funds as they look to the country to underwrite diversifying perils.

Lloyd’s of London has lowered its estimate of the insurance and reinsurance market’s loss from hurricanes Harvey and Irma to $3.9 billion, down from the $4.5 billion it had estimated at the end of September, and has added an estimate of $900 million for losses from hurricane Maria.