Archive for November, 2018

U.S. mortgage insurer Radian Guaranty, part of the Radian Group, has successfully completed its first mortgage insurance-linked securities (ILS) transaction, securing a slightly upsized $434 million from the Eagle Re 2018-1 Ltd. transaction, while simultaneously adding another $21 million of excess-of-loss reinsurance coverage.

The new catastrophe bond that is being marketed on behalf of long-standing catastrophe bond sponsor insurer USAA has upsized, we understand, with the Residential Reinsurance 2018 Ltd. (Series 2018-2) multi-peril cat bond deal now set to complete offering the firm $200 million of fully-collateralized protection.

The toll of destruction from the ongoing outbreak of California wildfires continues to rise, as the number of structures destroyed has risen again to 12,406, suggesting an increasing loss for insurance, reinsurance and ILS market interests and pointing to an industry loss at the high-end, or above, current estimates.

Further appointments and a new hire have been announced by Hiscox Re & ILS, the reinsurance and insurance-linked securities (ILS) division of global re/insurer Hiscox, as the division continues to build out its footprint in advance of the key renewal season.

The impact of hurricane Michael in the Florida Panhandle counties and neighbouring states has driven around 78% of U.S. primary insurance giant Allstate’s $202 million of October catastrophe losses.

According to specialist insurance-linked securities (ILS) and reinsurance investments manager Twelve Capital, one of the USAA sponsored catastrophe bond tranches and certain private ILS transactions are at risk of facing losses due to the ongoing California wildfire outbreak.

Losses faced by the retrocession market could influence reinsurance renewal pricing in 2019, as well as more broadly some lines of insurance, as impacts from recent catastrophe events in 2018 as well as loss creep from 2017 have resulted in a capital event for that niche of the industry, according to analysts.

We reported yesterday in one of our articles on the ongoing California wildfire outbreak that electrical utility Pacific Gas & Electric Co. (PG&E) has been sued over the cause of the Camp wildfire, a move which could put investors in its $200m Cal Phoenix Re Ltd. (Series 2018-1) at risk of losses.

Paul Jardine, of Catlin and XL Catlin experience, is the latest senior figure to join the advisory board of digital risk trading insurtech start-up Akinova.

A renewal of the only catastrophe bond in the market that provides its sponsor with reinsurance protection for workers compensation claims caused by earthquakes is underway, as a currently $225 million Golden State Re II Ltd. (Series 2018-1) transaction has been launched to the market.