Archive for October, 2021

On still improving prospects for the sector, hedge fund specialist manager K2 Advisors has updated its view to “strongly overweight” for catastrophe bond and private insurance-linked securities (ILS) investments, saying that pricing indications for the January renewals look strong as well.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, revealed that investors in its managed insurance-linked securities (ILS) fund strategies and joint-ventures took their share of catastrophe losses in the third-quarter, denting fee income from these activities during the period.

Catastrophe bond and insurance-linked securities (ILS) new issuance continues apace in 2021, with the total issued and tracked by Artemis so far this year now above $16.1 billion, meaning that a new annual issuance record is expected to be reached imminently.

The Howden insurance and reinsurance broking group is expected to launch a new capital markets focused reinsurance unit in Bermuda and has hired Darren Redhead from Lancashire Capital Management to lead at least the third-party capital aspect of the initiative, it’s understood.

The 1% aggregate exceedance probability insured loss (also the 100-year return period loss) from global catastrophe events has been estimated as around $320 billion by risk modeller AIR Worldwide, while the average annual is now over $100 billion.

United Insurance Holdings (UPC Insurance), the Florida headquartered but regionally expansive insurer, has added to its third-quarter catastrophe load and pre-announced an expectation of $37 million of pre-tax catastrophe losses after the reinsurance recoveries it expects to make for hurricane Ida.

Global insurance and reinsurance group Allianz has lifted its estimate for gross losses from storm Bernd’s impacts in Europe and the severe flooding that struck the region by 22% to €1.1 billion.

Bermuda headquartered global reinsurance firm PartnerRe is once again said to be the subject of sale discussions between Italian investment holding company EXOR and French mutual insurer Covéa, according to a report.

Here are the ten most popular news articles, week ending October 24th 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.

The target size for the second renewal of the parametric catastrophe bond that provides earthquake related workers compensation protection to benefit the Kaiser Permanente health group has been increased, with the Acorn Re Ltd. (Series 2021-1) transaction now expected to secure $475 million of capital market-backed capacity for the covered parties.