Archive for December, 2017

In the wake of recent catastrophe loss events, many major players in the global reinsurance market are pushing for rate increases at the renewals, seeking either to be paid back after bearing losses for their clients, or seeking pricing that they feel is more commensurate with the risks they underwrite.

French mutual insurance society Covéa Group has successfully sponsored its first catastrophe bond, the €90 million Hexagon Reinsurance DAC (Series 2017-1) transaction and this morning hailed it as the first to be exposed to French windstorm risks on an indemnity and aggregate basis.

Global reinsurance giant Munich Re has made a second early redemption of sidecar notes, redeeming the $75.578 million Class A tranche of the Eden Re II Series 2016-1 collateralized sidecar vehicle, which we’re again told is likely due to commutation of underlying retrocession contracts following losses suffered from recent catastrophes.

Here are the ten most popular news articles, week ending 17th December 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.

Despite the fact that a reinsurance market price recovery of sorts is anticipated in 2018, on the back of the major catastrophic losses, rating agency Fitch says that it expects reinsurers will remain pressured, with their earnings in 2018 likely only barely above cost-of-capital.

Watford Re, the investment-oriented, total return reinsurance joint venture run by Bermudian re/insurance group Arch Capital alongside asset manager Highbridge Principal Strategies, is planning to expand its operations in Europe with a move into the  Romanian insurance market, according to a report.

Florida’s Citizens Property Insurance Corporation is budgeting for a slightly harder reinsurance market in 2018, expecting to increase its risk transfer spend by approximately $7.3 million or 8%, but aiming to increase the amount of coverage it buys to $1.45 billion.

Farmers Insurance has reported a $1.2 billion gross loss from the northern California wildfires that struck the states wine region in october 2017, but robust reinsurance arrangements mean the insurer only expects to retain $90 million of the bill.

Daniel Brookman is taking over the role of Head of Alternative Capital at XL Catlin, having been promoted from SVP, Alternative Capital, now stepping up to fill the vacancy left by the recent departure of Craig Wenzel.

LGT ILS Partners, the insurance and reinsurance linked securities investments unit of the private bank and asset manager, has renamed its fully collateralised reinsurer to Lumen Re Ltd. and achieved an A.M. Best rating of ‘A’ for the vehicle.