Archive for December, 2017

In the future, the industry might well look back at hurricanes Harvey, Irma, and Maria as the start of a new chapter for the alternative capital, or insurance-linked securities (ILS) market, according to Aaron Koch, Director, Insurance-Linked Securities Group, P&C Division, Consulting Actuary, Milliman.

Reinsurance giant Munich Re has made an early redemption of the two classes of notes from its $290 million Eden Re II Series 2015-1 collateralized sidecar vehicle, which we’re told is likely due to commutation of underlying retrocession contracts following losses from recent catastrophe events.

Australian primary insurance group IAG has entered into a five-year 12.5% quota share arrangement with reinsurance giants Munich Re, Swiss Re and Hannover Re, in a transaction that will see the insurer passing on more of the risks it underwrites, while the reinsurers benefit from gaining access to diversifying risks.

Markel CATCo Investment Management Ltd. has raised further capital for its stock exchange listed retrocessional ILS investment strategy, adding another small $3.37 million increment, as the manager targets reaching $6 billion in assets under management during 2018.

Leadenhall Capital Partners, the non-life and life insurance and reinsurance linked securities fund manager, has added another new hire to its team, naming Amee Karlstrom as a new joiner within the ILS managers operations, taking on the role of Fund Operations Analyst.

Insurance and reinsurance group XL, which trades under the XL Catlin brand, has announced an estimate of its fourth-quarter 2017 catastrophe losses, putting the bill at $250 million, around $200 million of which is due to California wildfire losses suffered by the firms reinsurance unit.

The gap between company reported insurance and reinsurance industry losses and the estimates of industry losses is seen as around $20 billion by analysts at Jefferies, a figure which they believe will get filled in as some company estimates are expected to rise in 2018, which could add additional fuel to rising reinsurance prices next […]

The California Department of Insurance has released its data on insurance claims filed due to the California wildfires in October, putting the total at above $9.4 billion, a number which suggests the final industry loss to insurance and reinsurance interests is likely above current estimates.

Leadenhall Capital Partners, the London headquartered insurance and reinsurance linked securities fund manager, has grown its ILS assets under management significantly this year, rising 29% from $3.5 billion at the start of 2017 to now sit at $4.5 billion.

Bermudian reinsurance group Validus Holdings is sponsoring its first full catastrophe bond issuance with the launch to the ILS market of a $325 million Tailwind Re Ltd. (Series 2017-1) transaction, as it seeks to add more capital markets backed retrocession to its coverage.