Archive for December, 2018

The returns on aggregate insurance-linked securities (ILS), including catastrophe bonds, are being questioned by some investors, following the significant number of catastrophe loss events that have qualified under some contract terms in the last two years.

OppenheimerFunds, Inc, the asset manager that is in the process of being acquired by investment giant Invesco to create a $1.2 trillion global powerhouse, has grown the catastrophe bond and related insurance-linked security (ILS) assets under management of its flagship cat bond fund.

The recent selling off of catastrophe bonds, which has largely provided a mechanism for ILS fund managers to free up capital to put towards renewal deals, has resulted in much higher secondary market trading volumes but this has added mark-to-market price pressure and as a result dented total returns.

French reinsurance giant SCOR has completed a £1.2 billion longevity reinsurance deal with specialist defined benefit pension insurer Pension Insurance Corporation plc (PIC), covering the longevity risk for around 8,000 pensioners and spouses.

QBE, the Australian headquartered insurance group, has avoided any reinsurance rate increases following the recent catastrophe events by going to market early with a 2019 renewal that has come in cheaper while adding $1.1 billion more occurrence limit.

Insurance and reinsurance broker Aon has appointed Anup Seth as Global Leader, Underwriting Solutions within its Captive and Insurance Management unit, a role that will see him leading across captives and insurance-linked securities (ILS) management operations around the world.

The $200m Cal Phoenix Re Ltd. (Series 2018-1) catastrophe bond, which was sponsored by now under-pressure California electrical utility PG&E, has become the subject of a significant amount of interest from a range of investors and law firms that see a potential opportunity to speculate on its fate or divert the collateral funds.

Insurance and reinsurance broker Ed Broking Group is set to have a new Chief Executive Officer for London in Andrew Draycott, once the firm’s acquisition by BGC Partners is completed, as current Group CEO Steve Hearn moves up to lead the BGC Partners insurance division.

The longevity swap market has been a little quiet in 2018 for a number of reasons that we’ve documented over the months, but broker Willis Towers Watson (WTW) expects that 2019 will be far more active, with a doubling of longevity swap volumes predicted.

Capital markets investors that participate in the ever-growing catastrophe bond and ILS space are having to rethink the wildfire peril, as its contribution to risk within multi-peril aggregate deals is on the rise, according to catastrophe risk modeller RMS.