Archive for May, 2020

Everest Re, the global insurance and reinsurance firm, has been buying hedging protection in the form of industry-loss warranty (ILW) coverage in 2020, while catastrophe bonds and its Mt. Logan Re collateralised reinsurance vehicle also continue to play a key role in its protection for the all-important hurricane season.

Descartes Underwriting, the insurance technology (insurtech) focused managing general agency (MGA) that specialises in parametric and data-driven risk transfer products, has partnered with primary carrier giant Generali on creation and distribution of parametric insurance products.

In a clear sign of ILS fund demands for higher returns from underwriting catastrophe risks in the Florida reinsurance market, pricing for Florida Citizens’ new $300 million Everglades Re II Ltd. (Series 2020-1 & 2020-2) catastrophe bond has leapt significantly above the top-end of guidance.

We’re told that underwriters from some of the biggest insurance-linked securities (ILS) fund managers have effectively “downed pens” on the Florida reinsurance renewals, in reaction to the pricing and terms on offer.

Lloyd’s of London, the specialist insurance and reinsurance marketplace, has estimated that the non-life insurance industry faces as much as $107 billion of losses from the Covid-19 coronavirus pandemic to the 2020 underwriting year alone.

In a show of discipline by the catastrophe bond investor base, we’re told that the new cat bond from USAA, the $100 million or greater Residential Reinsurance 2020 Limited (Series 2020-1) deal, has now had a pandemic exclusion forced into its documentation.

There is an early consensus emerging on the size of the insurance and reinsurance industry loss from the Covid-19 coronavirus pandemic, with the broad range now focused on being $30 billion to as much as $100 billion, according to broker Willis Re.

Catastrophe bond and related insurance-linked securities (ILS) market activity remains buoyant despite the impacts seen from the Covid-19 pandemic, with primary issuance already reaching $6.1 billion in 2020, according to Artemis’ Deal Directory data.

The Athene Co-Invest Reinsurance Affiliate (ACRA) insurance-linked sidecar vehicle is expected to raise further capital, with investor discussions ongoing and senior executives say the third-party capital vehicle will become a significant source of capacity for its pension risk transfer deals.

Property insurance rates around the globe continue to accelerate higher, with commercial line rate increases leading the way and U.S. property rates accelerating fast, suggesting that reinsurance rates will continue to rise in tandem and to keep up.