Archive for May, 2020

The California Earthquake Authority (CEA) has now settled for a 75% upsizing of its latest catastrophe bond issuance, with the Sutter Re Ltd. (Series 20201- & 2020-2) issuance now fixed to provide $700 million of collateralised earthquake reinsurance protection.

The Texas Windstorm Insurance Association’s (TWIA) mid-year 2020 reinsurance and catastrophe bond renewal looks set to depend on pricing this year, as the insurer is aware of challenges faced in both marketplaces and will look to maximise on coverage at the best possible and most efficient pricing as it builds its 2020 reinsurance tower.

The sale of global reinsurance company PartnerRe to French insurance group Covéa has been called off, after attempted renegotiations over the price with seller EXOR in the wake of the Covid-19 pandemic failed to find an agreement.

The latest in our series of Artemis Live video interviews with leaders of the insurance-linked securities (ILS) and reinsurance markets features Luca Albertini, CEO of London headquartered insurance-linked securities (ILS) and reinsurance related investments manger Leadenhall Capital Partners LLP.

PGGM, the Dutch pension fund administrator and investment manager and the largest single source of assets in the insurance-linked securities (ILS) market, added a relationship with global reinsurance firm PartnerRe in 2019, as it expanded its ILS partner roster to ten.

Investors seeking diversified sources of return, particularly with little correlation to broader financial market factors, remain key drivers of allocations to the alternative asset classes of the world and appetite for these assets continues to grow.

Current insurance and reinsurance market dynamics suggest that it could be an opportune time for startups to enter the property/casualty market, according to Brad Adderley, Partner at Appleby, Bermuda.

The United States Treasury has shown in a letter that it is opposed to legislative moves that could force retroactive business interruption claims related to the Covid-19 pandemic onto the insurance and reinsurance industry.

Renaissance Re, the Bermuda-based reinsurance underwriter and manager of increasing amounts of third-party capital, believes that Covid-19 uncertainty means “substantial amounts of collateral will be trapped” at the end of 2020, the firms CEO Kevin O’Donnell has said.

Reinsurance companies are set for their fourth technically unprofitable year of underwriting in a row according to rating agency Fitch, who forecast that combined ratios across the sector will rise to 103.5% due to the impact of Covid-19 losses.