Archive for July, 2023

Executives from broking giant Aon would not be drawn to comment on the market issues around potentially invalid collateral, but President Eric Andersen did say that letters of credit (LOCs), as one of the forms the broker uses to match capital with risk, do bring the kind of capital they need for their clients.

Specialty non-catastrophe focused collateralized P&C reinsurance firm Corinthian Group said that in addressing issues related to reinsurance collateral sources via insurtech Vesttoo, the company is operating under the assumption that all letters of credit (LOCs) sourced from it are fraudulent.

Fronting specialist Clear Blue Insurance Insurance Group has already managed to replace over half of the coverage needed for reinsurance programs affected by the collateral issues linked to insurtech Vesttoo, the company said in an update.

Universal Insurance Holdings, the Florida headquartered primary insurance carrier, believes that there are now signs of an improved claims and litigation environment in the state, after the enactment of the legislative property insurance reforms.

Speaking today, Everest COO and Head of Reinsurance Jim Williamson said the company has the flexibility to lean in to any underwriting opportunities that emerge as a result of the fall-out from collateral issues linked to Vesttoo, although it would see them as secondary in terms of priority to its core focus.

Global reinsurance giant Munich Re has issued a preliminary estimate of $43 billion for first-half 2023 natural disaster insured losses around the globe, a figure that is well below the estimates issued by leading reinsurance brokers.

Insurance giant AIG has announced that Christopher Schaper will be named the firm’s Global Chief Underwriting Officer, effective when the previously announced sale of reinsurance unit Validus Re to RenaissanceRe completes.

Rating agency DBRS Morningstar says that the credit implications of the Vesttoo linked collateral issues should remain manageable for most insurance and reinsurance firms, but that “a number of fronting specialist insurers could have more significant exposure.”

Severe convective storm industry losses for the second-quarter of 2023 could approach the $30 billion mark, and RenaissanceRe believes three events have the potential to hit $4 billion each, its CEO said yesterday.

Speaking this morning during his firm’s earnings call, Adrian Cox, the CEO of London headquartered specialty insurance and reinsurance firm Beazley, gave a “hypothetical” answer to a question about potential exposure to the Vesttoo linked collateral issue.