Archive for July, 2023

Rating agency AM Best has said that it will review the collateral arrangements of all fronting companies that it provides ratings for, in light of the claims that collateral involved in transactions facilitated by Vesttoo could be fraudulent.

The Florida property insurance marketplace is still a long way off becoming a stable environment for carriers to operate in, but there are signals that an inflection point has now been reached, which suggests insurance in Florida is on a path towards greater normalcy, according to ALIRT Insurance Research.

The secondary market price for the Vita Capital VI Limited (Series 2021-1) mortality catastrophe bond transaction that was sponsored by global reinsurance firm Swiss Re has dropped, with the market seemingly anticipating an increasing chance of losses being paid under the terms of the notes.

Obsidian Insurance Holdings, Inc., a hybrid program insurance and fronting carrier holding company, has told us that any impact from the fall-out of collateral related issues at insurtech Vesttoo could only have “de minimus” impact to its business.

One of the trends coming out of the second-quarter is the elevated level of convective storm and severe weather losses affecting insurers across the United States, but at new and higher attachment levels very little reinsurance support is being seen, so far.

The Hanover Insurance Group is the latest to reveal a heavy catastrophe loss burden from recent convective storms and severe weather in the United States, but the carrier also said it has successfully renewed all its reinsurance at expiring terms for the coming year.

SageSure, the specialist independent managing general underwriters of property catastrophe exposed insurance, has hailed its use of the Property Claim Services (PCS) county-level catastrophe loss reporting in the trigger of its newest $50 million Gateway Re Ltd. (Series 2023-3) catastrophe bond.

Plenum Investments, the Zurich based specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has announced the appointment of Dr. Andreas Rickert as a new member of its Board of Directors.

According to our sources, insurance-linked securities (ILS) fund managers are having continued success at closing down certain exposures to last year’s hurricane Ian, with a number of side pockets being finalised and trapped capital continuing to be freed.

Program fronting specialist Clear Blue Insurance Group has stated that while it does not expect a material impact to its ratings from the ramification of issues at Vesttoo, the company may seek out more reinsurance to protect its surplus and capital.