Archive for October, 2020

U.S. primary mutual insurer USAA has increased its target size for its latest catastrophe bond, with the insurer now aiming to secure as much as $400 million of multi-year, fully collateralized, multi-peril catastrophe reinsurance protection from the capital markets with its new Residential Reinsurance 2020 Limited (Series 2020-2) transaction.

Evidence of third-quarter 2020 catastrophe loss impacts and trapped capital are seen in Markel Corporation’s third-quarter 2020 results, as the company reported reduced revenues from its insurance-linked securities (ILS) operations, primarily due to a decline in management fee income at Nephila Capital for the period.

Large loss events in the third-quarter of 2020 dented performance at Bermuda based reinsurance firm RenaissanceRe’s third-party capital joint ventures and managed insurance-linked securities (ILS) funds, resulting in a decline in performance fees.

The insurance-linked securities (ILS) market has performed admirably through the COVID-19 pandemic, demonstrating that the capital markets remained largely open for transfers of risk and that even under extreme risk scenarios ILS investors can be relied upon to support protection buyers need for risk capital.

McGill & Partners, the boutique risk solutions firm launched by former Aon President Steve McGill, has hired Nicky Payne, previously active underwriter of the Credit Suisse Insurance Linked Strategies owned Lloyd’s syndicate Arcus 1856.

Securian Financial recognises the capital efficiencies gained from becoming the first U.S. direct writer of life insurance to tap into the capital markets for reinsurance protection using a mortality catastrophe bond, after its $100 million La Vie Re Limited (Series 2020-1)  transaction completed.

Leading United States life, retirement and annuities insurance and reinsurance company Global Atlantic has put its co-investment vehicle named Ivy, which operates as a kind of sidecar structure, to work in a $5.7 billion annuity reinsurance deal with American Financial Group affiliate, Great American Life Insurance Company.

Reinsurance pricing may remain in a hard market for multiple years, according to analysts at Jefferies who believe dented capacity and still trapped ILS collateral can sustain current market conditions.

Zeta intensified into a hurricane prior to making landfall on Mexico’s Yucatan peninsula and while it may emerge back into the Gulf of Mexico a little weaker, the forecast suggests hurricane Zeta will approach the Louisiana region of the northern Gulf Coast for a Wednesday landfall.

Insurance giant American International Group, Inc. (AIG) will have a new CEO, as Peter Zaffino takes over as expected, while Brian Duperreault moves to become Executive Chairman of the company.