Archive for December, 2019

The longevity swap market could see a record volume of transactions in 2020 as market conditions look set to make hedging longevity risk particularly conducive, while insurance and reinsurance capital abundant and appetite for large longevity risk transfer deals high.

The government of the Philippines has failed to secure the necessary bids for reinsurance support to cover roughly US $19.6 of state assets and infrastructure, according to a report.

Hannover Re, the top-four global reinsurance firm, has facilitated issuance of another $27 million of private catastrophe bonds under the Seaside Re program, as it continues to help ceding companies and investors transact ILS deals in securitised note form.

The General Insurance Association of Japan (GIAJ) has updated its numbers on recent catastrophes, now saying that domestic insurers in the country have paid out US $6.83 billion in claims for typhoon Faxai, typhoon Hagibis and a heavy rainfall event that closely followed these storms.

Nationwide Mutual Insurance Company, the U.S. primary insurer, has benefited from another almost $8.5 million loss payment under its Caelus Re V Ltd. (Series 2017-1) Class D tranche of catastrophe bond notes, as reinsurance recoveries from that transaction continue.

Germany headquartered global reinsurance company Hannover Re has brought another private catastrophe bond transaction to market, with a $50 million Seaside Re (Series 2020-51) transaction now completed.

Bermuda-headquartered global reinsurance firm RenaissanceRe has raised the target size for its new Mona Lisa Re Ltd. (Series 2020-1) catastrophe bond transaction by 80%, with the issuance now aiming to secure up to $450 million of retrocession for the company.

The world’s largest institutional investors are increasingly vocal about the need to accelerate efforts to tackle the climate crisis, with many of the same group also contributing a significant proportion of the insurance-linked securities (ILS) market’s capital base.

The Ontario Municipal Employees Retirement System (OMERS), one of Canada’s largest pension funds, has again demonstrated its liking for insurance and reinsurance linked returns, by taking a 40% stake in run-off and legacy specialist firm RiverStone UK.

The innovative Sierra Ltd. (Series 2019-1) catastrophe bond transaction, that is designed to provide parametric U.S. earthquake protection to an investment manager’s portfolio of mortgage related securities, has successfully upsized by 50% to reach $225 million for the sponsor.