Archive for December, 2023

Analysts at BofA Securities Inc. are the latest to opine on the state of the reinsurance market and they conclude, as others have, that the hard market environment is likely to persist into 2024 and perhaps even beyond.

London headquartered specialty insurance and reinsurance underwriter Inigo has returned to the catastrophe bond market for its third time, seeking $100 million or more in aggregate retro reinsurance protection from a Montoya Re Ltd. (Series 2024-1) deal.

Here are the ten most popular news articles, week ending December 17th 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.

While the insurance-linked securities (ILS) sector has strengthened its governance practices considerably in recent years, when it comes to environmental, social and governance (ESG) considerations, ILS manager selection really matters, as there is variation in how ESG has been adopted and practices are followed, according to Frontier Advisors.

The catastrophe bond market needs to price appropriately for so-called secondary perils and stop giving them a “free-ride”, as there is a need to continue offering this type of typically frequency or aggregate style reinsurance protection, but investors must be adequately compensated for it, Tenax Capital has said.

PCS, a unit of Verisk, has announced an expansion of its insurance industry loss index for terrorism risks, with SRCC (Strikes, Riots, Civil Commotions, and Civil Unrest) now being added to the PCS Global Terror Index.

Beazley, the London headquartered specialty insurance and reinsurance underwriter, has now successfully secured the targeted $100 million in natural catastrophe reinsurance from its first ever Rule 144A property catastrophe bond, while the Fuchsia 2023-1 notes were eventually priced at the top-end of initial guidance.

Helios Underwriting PLC (Helios), the AIM listed Lloyd’s focused insurance and reinsurance investment company, has increased its forecast for capacity for 2024 to £501 million, helped by its recently announced third-party capital arrangement which its CEO terms a sidecar for the company.

Reinsurance firms are expecting the hard market environment to earn through in 2024 in much higher profits, with Munich Re the latest to forecast a significant increase for 2024.

Recent European extratropical windstorm Ciarán, which was also named Emir, is set to become one of the largest storm losses in northern Europe in almost two decades, with the initial insurance and reinsurance industry loss estimate set at almost €1.9 billion by PERILS.