Archive for July, 2018

The U.S. Federal Emergency Management Agency (FEMA) has launched its awaited first catastrophe bond to transfer risk from the National Flood Insurance Program (NFIP) to the capital markets and is seeking $275 million of reinsurance protection from a FloodSmart Re Ltd. (Series 2018-1) issuance.

Here are the ten most popular news articles, week ending 15th July 2018, 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 or get our email alerts for every article we publish.

Solidum Partners AG has signed up one of its subsidiaries as a member of Guernsey headquartered The International Stock Exchange (TISE), providing the firm with the ability to arrange and sponsor listings of insurance-linked securities on the exchange.

Risk models are challenged when it comes to estimating losses from complex hurricane events, according to a study by reinsurance broker JLT Re, which finds that overall there is a trend towards significant loss underestimation and that accuracy suffers when events have unforseen on un-modelled) consequences.

The region of Asia can provide a new source of growth for the insurance-linked securities (ILS) market, as steady expansion of catastrophe bonds and collateralised reinsurance are set to continue in the area and the level of education about the market increases, according to speakers at our ILS Asia 2018 conference yesterday.

The recent devastating flooding in Japan which is now reported to have caused at least 200 deaths and the flooding of thousands of homes and commercial properties is expected to cause industry losses in the billions of U.S. dollars, according to reinsurance broker JLT Re.

There has been a further extension to the maturity date for the $50 million Seaside Re 2017-3 transaction, a private catastrophe bond issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., suggesting it remains at-risk of losses from the 2017 hurricanes and catastrophes.

After muted rate movements across the reinsurance sector during 1/1, followed by disappointing April and mid-year renewals, Director of Underwriting, London at Hiscox, Megan McConnell, feels rates at this level are unsustainable for a purely equity-based balance sheet.

The insurance-linked securities (ILS) market’s acceptance of mortgage risk served as a shift in the dynamics of the ever-changing mortgage reinsurance sector, with further growth in the space expected outside of the U.S. market, according to reinsurance broker Capsicum Re.

Stone Ridge Asset Management, the alternative risk premia focused mutual fund manager, is no stranger to taking big bets on the world’s largest insurance and reinsurance firms, with its portfolio of ILS assets now amounting to $7 billion.