Archive for May, 2022

Amid all the challenges the Florida-focused property insurance company FedNat Holding Company has been facing, its latest is the resignation of its Chief Financial Officer (CFO).

For 2022, the staff of Florida’s Citizens Property Insurance Corporation are seeking approval to buy roughly $3.64 billion of new risk transfer, across traditional reinsurance and catastrophe bonds, which added to still in-force cat bonds from prior years will take the Citizens program to roughly $4.7 billion for the coming hurricane season.

Ocorian, a global provider of corporate and fiduciary services, fund administration and capital markets with operations focused on the insurance-linked securities (ILS) and reinsurance space, has hired Ashish Prabhakar to lead business development in capital markets activities across the United States.

Fraud, litigation, claims inflation, social inflation, loss adjustment expenses, there seems a multitude of reasons for natural disaster insurance claims to become amplified and for higher loss costs to ultimately flow to providers of reinsurance capital, including ILS funds and investors.

SiriusPoint, the international insurance and reinsurance company that launched as Third Point Re and Sirius Group combined, has announced significant changes at the top as CEO Sid Sankaran is departing for a new opportunity and former Third Point Re CEO Daniel Malloy is set to step in and lead the company through the transition.

Firm order terms (FOT’s) for the 2022 traditional reinsurance renewal for the Texas Windstorm Insurance Association (TWIA) suggest an increase of roughly 29% in rate-on-line (RoL), which translates into a spend higher than budgeted, but that is aligned with market conditions and TWIA’s growing program.

Today, Artemis can report that leading insurance-linked securities (ILS) market facilitator Horseshoe has transitioned to sit underneath the Artex brand of its parent, but CEO of newly formed Artex Capital Solutions Kathleen Faries told us that this doesn’t change the mission to be the best-in-class ILS service provider.

Issuance of new catastrophe bonds and related insurance-linked securities (ILS) has already surpassed $5.1 billion in 2022 and there are already another nearly $2.2 billion in the pipeline that could complete before the middle of the year.

The Governor of Florida Ron DeSantis expects the special session of the legislature will deliver “really significant reforms” to Florida’s property insurance sector, that he believes can stabilise the marketplace there.

For investors considering entering the catastrophe bond market, or increasing their allocations to it, during this period of multi-year high cat bond spreads, “speed is of the essence” according to investment manager Twelve Capital, as this opportunity won’t last for long.