Archive for August, 2024

The surge in catastrophe bond market issuance and resulting insurance-linked securities (ILS) market growth over the last year, came at the right time for the insurance and reinsurance market, meeting their needs for risk transfer, according to Richard Pennay of Aon Securities.

Typhoon Shanshan struck Japan’s southern island of Kyushu yesterday and while it is being called one of the strongest storms to hit the country in decades, the ultimate impact to reinsurance markets is expected to be minimal, while catastrophe bonds and other insurance-linked securities (ILS) are expected to be largely or completely unaffected.

The use of collateralized retrocession limits has increased among the largest reinsurance companies as alternative capital continues to be a critical source of retro protection, but for some retro buyers the cost of coverage remains too high, S&P Global Ratings has said.

While much has been made about the mid-year renewal seasons’ flattening to slightly down trajectory of property catastrophe rates, this isn’t currently seen as a significant issue by investors in the reinsurance space. But, any reversal on where retentions and attachments sit is seen as unacceptable by many.

Howden Capital Markets & Advisory (HCMA), the insurance and reinsurance broker’s capital markets and insurance-linked securities (ILS) specialist unit, has appointed Des Potter as an Independent Non-Executive Director for its UK business.

Artemis has partnered with Wilmington Trust to host a live insurance-linked securities (ILS) focused webinar on October 31st 2024, in which our industry expert speakers will explore the state of the catastrophe bond and broader ILS market, as well as the outlook for 2025.

Markel Group continued to benefit from returns of value due to favourable loss development on the CATCo retrocessional reinsurance portfolio in the second-quarter of 2024, taking the total for the first-half to $24.1 million.

Back on July 10th we reported on a new $45.5 million Randolph Re (Series 2024-1) private catastrophe bond that appeared to be a renewal of a wildfire transaction for Mercury Insurance and for the first time Aon had used its Guernsey based protected cell company White Rock Insurance Company PCC Limited for the issuance.

On average, catastrophe bond loss multiples are not expected to fall back much further, as the capacity providers in the reinsurance market, including insurance-linked securities (ILS) fund managers and investors, are still motivated to hold onto the gains recently made, according to AM Best.

BGC Group, Inc., the global brokerage and financial technology company, has added a new hire to its weather derivatives trading desk, taking Leah Loguidice from Arbol for a weather derivatives origination and structuring role.