Archive for September, 2022

Broking group Aon is expecting a strong chance for another record year of issuance in the catastrophe bond market, with the pipeline of potential deals that could get executed being as long as it has ever been for the firm.

Primary insurance carriers specialising in property risks in Florida are continuing to cede rising levels of losses to their reinsurance capital partners, even without there having been any major storms of late, rating agency AM Best has explained.

Aon has made two senior appointments within its Aon Insurance Managers arm in Bermuda, with a new Managing Director of the operation and a new Head of its White Rock activities on the island.

As the insurance-linked securities (ILS) market continues to reset itself after a number of years of heavy catastrophe losses, growth is likely to be more prominent in areas such as catastrophe bonds and top-layer peak peril strategies, that have displayed more consistent performance, Twelve Capital’s Marcel Grandi believes.

Inver Re, the global reinsurance brand of the Ardonagh Group, has announced a new Legacy Solutions unit, with the hire of former Enstar CFO Guy Bowker and hints at a capital agnostic approach that could make use of alternative capital, where solutions demand it.

Tropical storm Fiona has now formed in the Atlantic, the sixth named storm of this still relatively quiet 2022 hurricane season, with a path that will take the storm through the Caribbean islands, but some uncertainty in the cone over the eventual direction storm Fiona will choose to take.

Growth of the insurance-linked securities (ILS) market is not as assured as it might seem, with a number of potential threats to it. But Tom Johansmeyer, Head of PCS at Verisk, believes there is plenty of opportunity for ILS expansion, with specialty retrocession one clear area for ILS market growth.

Moses Ojeisekhoba, Chief Executive Officer, Reinsurance at Swiss Re explained this week that the reinsurer expects prices will rise at the end of year renewals, no matter what the structure being transacted is and that while its appetite for catastrophe risks continues to grow, the reinsurer will remain underweight Florida for now.

Investing into the Lloyd’s insurance and reinsurance marketplace through its insurance-linked securities (ILS) structure has “unique capital efficiency” and Bill Cooper of TigerRisk believes the initiative could attract billions in funds from capital market investors.

According to data from AM Best, just $850 million of catastrophe bonds and other insurance-linked securities (ILS) are held by US insurers in their investment portfolios, a surprising low number given the evident diversification they can offer.