Archive for February, 2024

US specialty insurance group Assurant has secured more catastrophe reinsurance protection for the year ahead, while switching to an April 1st renewal, with $1.38 billion of limit already secured for its US cat tower by January.

The subject of volatility in re/insurers results due to frequency loss events and the fact they require capital and risk transfer to help them manage this, came up during one of the panel sessions at our recent ILS NYC 2024 conference in New York on February 9th.

QBE has revealed details of its reinsurance renewal alongside its results this morning, with significant changes evident as the main catastrophe excess-of-loss tower has shrunk, while the re/insurers aggregate reinsurance arrangement has been restructured.

Fidelis Insurance has now finalised its latest catastrophe bond Herbie Re Ltd. (Series 2024-1) to provide the originally targeted $150 million of industry-loss triggered retrocession, but at significantly reduced pricing as the spreads fell to the bottom of the twice reduced range.

Swiss Re’s specialist insurance-linked securities (ILS) and third-party reinsurance capital management division, Alternative Capital Partners (ACP), has reported a 68% increase to its fee income earned for the full-year 2023, reaching $195 million.

The insurance and reinsurance industry loss estimate for Cyclone Gabrielle’s impacts in New Zealand has now been finalised by PERILS AG, but not without a further almost 8% increase to the quantum of the insured losses, which now sits at NZ $2.174 billion.

Australian primary insurer IAG reported that its natural peril costs and catastrophe losses cost the company $521 million through the first-half of its fiscal year 2024, resulting in an erosion of $250 million of the deductible beneath its aggregate reinsurance cover.

Global reinsurance giant Swiss Re grew its natural catastrophe reinsurance premiums by 12% at the January 2024 renewals, while finding the nat cat business had the “most pronounced” rate increases of its 1/1 renewal book.

US primary insurer Allstate has reported January catastrophe losses of $325 million, with the majority of this coming from just two events, suggesting the potential for further loss aggregation under its aggregate reinsurance cover from its catastrophe bonds.

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case has reached a proposed settlement with fronting specialist Clear Blue Insurance that sees an agreement reached on the bankruptcy plan and in relation to funds specifically held in one of the debtor vehicles, Vesttoo Bay XIV Limited.