Archive for August, 2021

Hurricane Henri weakened back into a tropical storm before making landfall yesterday in Rhode Island, but 140,000 homes are reported without power across the northeast and flash flooding affected parts of New York, New Jersey and the Tri States, with more heavy rainfall from Henri forecast for today.

Here are the ten most popular news articles, week ending 22nd August 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.

Specialist catastrophe bond, insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital has said that hurricane Henri, which is heading for the US northeast states, is not expected to cause a significant impact to its ILS funds.

Hurricane Henri is tracking to the north over the warm Gulf Stream waters and is forecast to to head towards the US northeast states of Massachusetts, Rhode Island, Connecticut and New York, with landfall in New York or New England expected on Sunday.

The catastrophe bond market “finds itself at a record-breaking pace” according to Aon Securities and this is expected to continue through the rest of 2021 and into next year, while keen pricing is also likely to remain a feature of new issuance.

Having access to diverse and efficient sources of capital and ensuring they are treated as equal is increasingly a key trait of a successful reinsurance company, something the CEO of global player Everest Re clearly understands.

So far this year, 21 privately placed catastrophe bond transactions have been issued with a combined value of more than $672 million, which is almost double the volume witnessed for the entirety of 2020, as shown by the Artemis Deal Directory.

With catastrophe and severe weather losses running an estimated 41% above the long-term average after July for the global insurance and reinsurance industry, analysts at investment bank Jefferies warn that it is becoming increasingly likely catastrophe budgets are exceeded this year.

Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has promoted three of its senior staff to become new Partners in the firm.

US primary insurance carrier Allstate has added another $227 million of pre-tax catastrophe losses for the month of July 2021, which is much higher than the prior year’s $145 million.