Archive for December, 2017

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Decoupling of reinsurance pricing and risk “less than ideal” – KBW

The decoupling of reinsurance pricing and expected reinsurance losses is "a less-than-ideal business model" according to analysts at Keefe, Bruyette & Woods, who feel that price hikes tend to be a reaction to losses, rather than being commensurate with a changing view of risk.It's a subject we've written about before, read the full article →

IMF backs calls for Caribbean catastrophe bond

The International Monetary Fund (IMF) is putting its weight behind calls for the use of catastrophe bonds to help the Caribbean nations to increase their resilience to and ability to recover from disasters, after a hurricane season that has impacted the region heavily.After the devastating impacts of hurricanes Irma and read the full article →

Reserve strengthening, wildfires push some ILS funds to November drop

Negative returns have continued for a number of insurance-linked securities (ILS) and reinsurance or retrocessional linked investment funds in November, as some reserve strengthening has been required for prior month catastrophe events and a few ILS funds have been hit by the California wildfires.The second-half of 2017 brought major hurricanes, read the full article →

ILS spreads need to widen before Baillie Gifford allocates more: McIntyre

Global asset management firm, Baillie Gifford, is unlikely to significantly increase its allocation to the insurance-linked securities (ILS) space until spreads widen, according to Baillie Gifford’s David McIntyre, one of the managers of its Diversified Growth Fund.Currently, the asset manager’s allocation to the ILS sector sits at just under 4%, read the full article →

Speed-to-market still a sticking point for UK ILS: Clyde & Co

Speed-to-market remains the main sticking point for the United Kingdom's Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulations 2017, which constitute the UK's insurance-linked securities (ILS) regulatory regime, according to law firm Clyde & Co.The issue of speed of approval remains the one which could hold back the read the full article →

Post-loss rate rises to be more durable in primary lines: Morgan Stanley

While the record levels of third-quarter catastrophe losses are expected to "crystalize a turning point" by the equity analysts at Morgan Stanley, the team believe that this any post-loss turn in rates will be more durable in primary insurance lines than in reinsurance or retrocession.The analysts do expect to see read the full article →

$10m LI Re 2017-1 private cat bond issued from Hannover Re vehicle

German reinsurance giant Hannover Re has facilitated another private catastrophe bond transaction, with the issuance of a $10 million LI Re (Series 2017-1) deal that securitises California earthquake reinsurance risk for an unknown cedent and certain ILS investors.Hannover Re's Bermuda domiciled segregated accounts vehicle Kaith Re Ltd. has been involved read the full article →

Hannover Re facilitates $27m Seaside Re 2018-3 private cat bond

German reinsurance firm Hannover Re has facilitated a second private catastrophe bond this month with the completion of a $27 million Seaside Re (Series 2018-3) transaction, the second series of cat bond notes to be issued through its Kaith Re Ltd. Bermuda domiciled segregated accounts vehicle in recent days.Just over read the full article →

RGA in £900m asset & longevity reinsurance deal for LV=

Reinsurance Group of America (RGA) has completed a £900 million reinsurance transaction covering a portfolio of annuity business from UK insurer Liverpool Victoria (LV=), in a deal that saw both the asset and longevity risk transferred.The asset and longevity risk transaction saw RGA providing reinsurance for a block of approximately read the full article →

Australian severe storms pegged at initial $105m loss, set to rise

Severe thunderstorms that struck the Victoria and Melbourne region of Australia on December 19th, bringing strong winds, large hail and flash flooding, are estimated to have already resulted in over AU $105 million of claims, a figure that is expected to rise significantly.The Insurance Council of Australia declared a catastrophe read the full article →