Archive for December, 2017

Alternative capital, insurance-linked securities (ILS) and collateralized reinsurance will maintain its influence on global reinsurance pricing, as a “key driver of the magnitude of future rate increases,” even after the recent major catastrophe losses and the trapping of collateral.

We’re pleased to reveal four more expert speakers, from GC Securities, HSBC Global Asset Management, Property Claim Services (PCS) and Mt. Logan Re Ltd., who have been added to the roster for our second conference in New York, Artemis ILS NYC 2018.

Markel CATCo Investment Management Ltd. has established a loss reserve amounting to 4.4% of net asset value (NAV) for its listed retrocessional reinsurance fund, the CATCo Opportunities Fund, to cover any losses from the wildfires that struck the northern California region during October 2017.

The use of collateralised sources of reinsurance and alternative reinsurance capital is providing a significant diversifying element to the protections adopted by United Kingdom insurers and Lloyd’s of London syndicates, according to information from the Bank of England.

Validus Holdings, Ltd., the Bermudian insurance, reinsurance and third-party capital management firm (through its AlphaCat Managers Ltd. unit), has announced a re-organisation of its reportable segments, naming three new global leaders, including Lixin Zeng, CEO of AlphaCat, taking on a Global Head of Asset Management role.

The wildfires in southern California continue to spread, with an area the size of New York now burned and over 1,000 structures destroyed in the current outbreak. It’s expected that reinsurance and retrocession will pick up a growing portion of the bill under aggregate covers.

Providing a useful indicator of the appetite of insurance-linked securities (ILS) and catastrophe bond investors, the €90 million Hexagon Reinsurance DAC (Series 2017-1) catastrophe bond issuance, sponsored by French mutual insurance society Covéa Group, has seen its pricing drop to below the initial guidance range.

The insurance and reinsurance industry loss from recent extratropical cyclone Herwart has been put at EUR 252 million by industry loss data aggregator PERILS AG, which is lower than other estimates for the impact from the October European windstorm.

Here are the ten most popular news articles, week ending 10th 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.

The California Earthquake Authority (CEA), the not-for-profit residential earthquake insurance provider in the state, has reached a new milestone as it now insures more than 1 million homes across California, growth that has been assisted by the use of traditional reinsurance and risk transfer from the capital markets.