Archive for June, 2021

US property insurers and possibly some of their reinsurance providers are facing high-costs from severe storms and convective weather in May, with multi-billion dollar payouts expected by Aon’s Impact Forecasting unit.

A core reason that insurance-linked securities (ILS), such as catastrophe bonds and other reinsurance linked investments, are considered as socially responsible investments by many allocators is the fact they deploy their capital into natural disaster recovery and rebuilding.

Insurance and reinsurance broker Miller, the newly independent and private equity funded broking group, has announced a further expansion into the insurance-linked securities (ILS) world, with the appointment of Erik Manning as Head of ILS.

According to a rating report from KBRA, ILS Capital Management’s reinsurance company Prospero Re Ltd. reported an improved accident year combined ratio for 2020, but its calendar year result was affected by loss creep largely related to 2018’s typhoon Jebi.

US insurer Liberty Mutual has now secured its new Mystic Re IV Ltd. (Series 2021-2) catastrophe bond transaction at its 25% upsized target to provide $300 million of multi-year collateralized reinsurance protection.

Global reinsurance firm Ariel Re has now finalised its first catastrophe bond to benefit its Lloyd’s of London Syndicate 1910 with a price drop of roughly 14%, as the coupon was fixed at the low-end of reduced guidance for its $150 million Titania Re Ltd. (Series 2021-1) retro cat bond.

With the G7 meeting in Cornwall, UK beginning tomorrow and the COP26 only five months away, CEO’s of major global corporations are calling on world leaders to scale up climate risk transfer as part of the financial response to climate change.

This morning, global insurance company AXA has shown that business interruption impacts from the COVID-19 pandemic continue to be felt, with the company announcing a EUR 300 million settlement offer for French restaurants.

After a flurry of catastrophe bonds launched in recent days, it is now clear that issuance of new catastrophe bonds and other related insurance-linked securities (ILS) tracked here at Artemis will break the record for the second-quarter and also the first-half of 2021.

Coventry, a leading player in the market for life settlement investments, sees positive market momentum for this segment of insurance-linked investing and has made a key promotion to support expected growth.