Archive for August, 2024

Over the first-half of this year, US headquartered insurance holding company W. R. Berkley Corporation ceded fewer premiums to its Lifson Re collateralized reinsurance sidecar, despite the vehicle remaining the same size in capital terms for 2024.

Analysis from global consultancy Bain & Company suggests that institutional investors will increase their allocation to alternative asset classes by a 10% CAGR from 2022 to 2032, to reach at least $60 trillion.

Pool Re, the UK government backed mutual terrorism reinsurer, appears to be set to return to the catastrophe bond market, announcing this morning that it has signed up Aon Securities and Howden Capital Markets & Advisory as its insurance-linked securities (ILS) advisors.

Global reinsurance company Ariel Re appears set to further formalise its activities in third-party capital management and helping investors access its risk under a new brand, with an entity named Ariel Re Capital Partners being established by the firm, Artemis can report.

Reinsurance giant Swiss Re has reported its first-half results this morning, with $2.1 billion in net income generated and a 20.1% ROE. At renewals so far this year premium expansion has continued, but while gross price increases remained positive, after accounting for loss assumptions the net price change is slightly negative.

The recent CrowdStrike related global IT outage event has shown that it is essential to have specialised knowledge about cyber risks in order to effectively invest in cyber catastrophe bonds, insurance-linked securities (ILS) and reinsurance focused asset manager Twelve Capital has said.

In time, as wildfire risk models advance and the market becomes more accepting of them, Guy Carpenter executives suggest investor confidence may increase, resulting in a growing willingness to deploy ILS capital to support the California market’s need for wildfire protection.

The management of fronting specialist Clear Blue Insurance are praised for the rapid and determined response to the issues that arose when the company found itself caught up in the reinsurance letter of credit (LOC) fraud perpetrated by Vesttoo, according to rating agency KBRA.

Two more series of private catastrophe bond notes have been issued by the Artex Capital Solutions managed Eclipse Re Ltd. vehicle, with these new deals amounting to almost $12.5 million in risk capital, taking total private catastrophe bond issuance for 2024 so far to nearly $400 million, according to Artemis’ data on the cat bond […]

The California Earthquake Authority (CEA) kept its reinsurance and risk transfer program relatively stable at renewals during June 2024, ending the month with a slight increase to just over $9.15 billion of limit.