Archive for May, 2020

Bermuda-based reinsurance firm and third-party capital management specialist RenaissanceRe has again reported a rise in the amount of fee income earned through its various third-party capital management and ILS fund activities, also paying out more in distributions to investors as well.

Reinsurance giant Munich Re has reported a “financially manageable” hit of around EUR 800 million to its first-quarter 2020 results, from losses caused by the Covid-19 pandemic.

Catastrophe risk modelling specialist RMS has said that a hurricane striking the United States while pandemic restrictions remain in place could end up inflating the ultimate insurance and reinsurance industry loss by up to 20%.

As we reported recently, Markel Corporation has invested $90 million of its own capital into an investment strategy managed by its retrocessional reinsurance focused investment manager Markel CATCo, to boost capital available to fund investor redemptions.

U.S. primary insurance giant Allstate has added roughly $221 million of new protection to its core nationwide excess of loss catastrophe reinsurance program in the first-quarter of 2020, with the capital markets playing an important role through the Sanders Re II catastrophe bond.

Hiscox Group, the Bermuda headquartered re/insurer, has acquired additional retrocessional reinsurance protection against peak catastrophe risks with a $100 million slug of industry loss warranty (ILW) based protection secured in advance of the all-important hurricane season.

The Covid-19 pandemic is unlike anything else ever encountered by the re/insurance industry and will be a headwind for future reinsurance capacity, according to AIG’s Global Chief Operating Officer and CEO of General Insurance Peter Zaffino.

Reinsurance firm Hannover Re has set up an initial EUR 220 million net reserve for losses from the Covid-19 pandemic, but warns that it finds it impossible to quantify the potential full impacts to its business across the P&C and life sides.

Price guidance for the New York Metropolitan Transportation Authority’s (MTA) new catastrophe bond has been increased after investor’s fed back that the initial coupon was not sufficient, we’re told, with the parametric MetroCat Re Ltd. (Series 2020-1) cat bond transaction now offering a higher return.

Insurance and reinsurance firm Hiscox Group has announced a new capital raise to help the company be better positioned for growth opportunities and rate increases across its reinsurance and U.S. wholesale businesses, but at the same time third-party capital support at the firm has dipped.