Archive for July, 2023

BGC Group, Inc., the global brokerage and financial technology company, has launched a new weather derivatives broking desk, with the hires of well-known weather hedging and trading specialists Nicholas and Eric Ernst.

Analysing the insurance-linked securities (ILS) market outlook for the third-quarter of 2023, K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, believes spreads could tighten further, especially in catastrophe bonds, but it remains constructive on ILS and has now signalled an overweight view on industry-loss warranties (ILW’s).

In the current hard reinsurance market environment, even the very largest cedents with the best track-records now have increased retentions. Case in point being Chubb, as its global property catastrophe reinsurance retention has risen at its latest renewal.

With no issuances of mortgage insurance-linked securities (ILS) transactions since last September, it comes down to insurer Essent Guaranty again to reopen the market, with a $253.2 million Radnor Re 2023-1 Ltd. offering now launched to investors.

Insurance and reinsurance broking giant Aon has acknowledged that it is facing legal action over letters of credit (LOCs) related to the Vesttoo collateral investigation, but believes it has “meritorious defenses” in this case.

Commercial property insurance rates continue to rise around the world, with insurers having a heightened sensitivity to catastrophe exposure in 2023, data from broker Marsh’s latest report shows.

Here are the ten most popular news articles, week ending July 30th 2023, 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 acceleration of activity in the catastrophe bond market in 2023, as cedent demand for covers in the upper-layers of their reinsurance towers has risen and the ILS market has responded to it, is seen as something that will positively benefit the bottom-line at RenaissanceRe.

Pure catastrophe bond funds as a group were up an impressive 7.17% for the first-half of 2023, narrowly beating the 6.91% average return of the private ILS funds that invest in collateralised reinsurance and retrocession opportunities as well, the latest data from ILS Advisers shows.

Aon’s private catastrophe bond platform Randolph Re has completed a new issuance of $45 million of Randolph Re (Series 2023-3) private cat bond notes that are exposed to wildfire risks, for an unnamed sponsor that we assume will again be California headquartered property casualty insurer Mercury Insurance.