Archive for March, 2021

The severe flooding and storms that affected parts of east and southeastern Australia recently are expected to add to reinsurance pricing pressure for the major insurance carriers operating in the country.

Reinsurance recoveries are set to offer some respite to insurance carriers exposed to winter storm Uri and the deep freeze event that impacted the south, in particular Texas, according to S&P Global Ratings.

Here are the ten most popular news articles, week ending 28th March 2021, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Global insurance and reinsurance firm Everest Re is back in the capital markets with its first catastrophe bond issuances since late 2019 and is seeking support from insurance-linked securities (ILS) investors for a potential $800 million or greater of retro reinsurance coverage through two series of Kilimanjaro III Re Ltd. 2021 cat bonds.

Pricing has now been finalised for Japanese insurance and reinsurance giant Sompo’s new $400 million sized Sakura Re Ltd. (Series 2021-1)  catastrophe bond transaction, with both tranches of notes seeing their coupon fixed at the mid-point of guidance or lower.

Hiscox ILS, the insurance-linked securities (ILS) and collateralised reinsurance underwriting unit of specialist underwriter Hiscox Group, has reported a rise in fee income earned from its ILS investment management business in 2020.

The severe flooding and storms affecting parts of Australia have already been counted to have driven insurance claims amounting to A$385 million and this number will rise significantly.

Heightened and ongoing uncertainty facing the reinsurance sector and the fact reinsurers have responded by shifting their views of risk is set to drive further rate increases and should make the gains already secured more sustainable, according to analysts at Morgan Stanley.

Losses from recent bouts of severe convective weather and thunderstorms in the United States are set to drive insurance and perhaps reinsurance market losses into the hundreds of millions at least, according to Aon’s Impact Forecasting.

American International Group (AIG) has made two senior reinsurance related appointments, as it continues to underline the importance of reinsurance on both inwards and outwards sides of its book.