Archive for January, 2024

Despite some tightening of spreads in catastrophe bonds, overall K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, remains overweight the insurance-linked securities (ILS) asset class, although finds industry-loss warranties (ILW’s) relatively less attractive at this time.

A few signs emerged at the recent January 1st 2024 reinsurance renewals that bode well for protection buyers as we move through this year and into the next, as broker Aon highlighted that appetite is returning for some of the more challenged products and areas of the tower.

With rates remaining higher and performance improved, capital market investor confidence in the global specialty insurance and reinsurance sector is returning, according to Insurance Capital Markets Research.

The underwriting profits of Bermuda based insurance and reinsurance companies are likely peaking at their current levels, Fitch Ratings believes, but its analysts say that returns are expected to remain favourable with market conditions attractive and stable rates expected at the mid-year renewals.

Aetna, the health, medical and benefits insurance unit of CVS Health, has now successfully secured the targeted lower pricing for its fifteenth Vitality Re health insurance catastrophe bond issuance, with the $200m of notes on offer from the Vitality Re XV Ltd (Series 2024) transaction now priced at the bottom of reduced guidance.

Property catastrophe reinsurance rates-on-line slowed their trajectory significant at the January 2024 renewals, but in the United States while the slow-down was a little more severe than some other regions, US property cat reinsurance rates are now a stunning 116% up since 2017, according to Guy Carpenter’s Index.

The capital raise for the 2024 underwriting year for London headquartered specialty insurance and reinsurance firm Beazley’s third-party capital backed Smart Tracker syndicate 5623 was “heavily oversubscribed” and the structure remains on-track to deliver a fourth consecutive year of underwriting profits to backers.

Arch Re, the global reinsurance arm of Arch Capital group, has hired experienced portfolio manager Christian Roberts from his most recent role at specialist reinsurance investment manager Aeolus Capital Management, to take on a third-party capital focused position at the company.

Data-driven cyber underwriting company Envelop Risk has announced the launch of a third-party investor backed special purpose arrangement (SPA) vehicle at Lloyd’s that will underwrite cyber reinsurance.

The insurance-linked securities (ILS) market is expected to remain supportive of investors in 2024, according to Twelve Capital’s Head of Investment Solutions Vittorio Sangiorgio.