Archive for October, 2020

The Philippines government’s World Bank facilitated IBRD CAR 123-124 catastrophe bond transaction is under threat from typhoon Goni, which may cause a partial loss of principal for investors in the cat bond if it maintains significant wind speeds as it approaches Manila.

Expectations of just how much insurance-linked securities (ILS) collateral could be trapped at the end of 2020 are on the rise, alongside the frequency of losses and total costs from catastrophe events in the United States, it seems.

Sources tell us that two Florida primary insurance carriers are likely to head into receivership and be deemed insolvent within a matter of days, with the regulator set to act perhaps as soon as Monday.

Global insurance and reinsurance group Everest Re has reported impressive growth of its reinsurance book in the third-quarter of 2020, as premiums written grew 20% and the company’s CEO said it is benefiting from a “flight to quality” in current “underwriter’s market” conditions.

Securis Investment Partners, the London-headquartered insurance and reinsurance linked asset manager, has launched a new Insurance Solutions Group as it seeks to expand the range of insurance-linked securities (ILS) investment options available to it.

Impacts and in particular wind damage from hurricane Zeta have spread far inland across the United States, bringing back memories of Isaias earlier this year.

Global reinsurance firm Swiss Re has reported a solid third-quarter of net income that has helped to narrow its group net loss for the first nine months of the year, despite further additions to its reserves for the COVID-19 pandemic that have now reached US $3 billion.

Insurance-linked securities (ILS) and catastrophe bond investors were supportive of the first mortality bond to feature an indemnity trigger, according to Willis Re Securities who structured and placed the deal.

Metlife, Inc., one of the largest life and annuities insurance groups in the world, completed a second longevity reinsurance transaction in the UK market, reinsuring $320 million of pension liability related longevity risk for Rothesay Life.

The experience of the reinsurance market with COVID-19 and business interruption, as well as the expectation that uncertainty will persist over the eventual industry loss impact of the pandemic, will all combine to elevate the preference of cedents for rated paper, RenaissanceRe’s CEO believes.