Archive for October, 2024

Given there have been some losses to insurance-linked securities (ILS), Jeremy Noble, President of Insurance at Markel, speaking during the company’s earnings call for Q3’24, provided some context in regards to the upside potential for segment income for the firm’s ILS operation, Nephila Capital, in 2025.

Global reinsurance firm Ariel Re has returned to the catastrophe bond market looking to secure $175 million or more in multi-peril industry-loss triggered retrocession through the Titania Re Ltd. (Series 2024-1) transaction, a deal that had initially been mooted earlier in the year.

Some investors have started to experience benefits from the outperformance of investments in the private reinsurance segment compared to catastrophe bonds, after softening of pricing had been seen in the second quarter, Pascal Koller Partner and Portfolio Manager at LGT ILS Partners Ltd., recently commented.

NN Group’s, or Nationale-Nederlanden, latest catastrophe bond has seen its price guidance range fall, we understand, with the still €75 million Orange Capital Re DAC (Series 2024-1) issuance now looking likely to price at the bottom of initial guidance, or below.

In announcing its third-quarter results at end of day yesterday, US insurer Allstate also provided an insight into the losses it expects from recent hurricane Milton and at the level disclosed, it appears that the lowest of the carriers Florida focused Sanders Re catastrophe bonds could trigger and pay out, Artemis can report.

Nephila Capital’s assets under management (AUM) rose by $400 million in the third-quarter of the year to end September 2024 at $7 billion, while revenues from Nephila’s ILS business reported by its parent Markel are also up, if you exclude a one-off from the prior year.

According to Aon’s Reinsurance Solutions division, combined industry losses from hurricanes Helene and Milton are expected to fall within a range of $34 billion to $50 billion, at which level insurance and reinsurance sector capital is well-positioned to absorb them and the events underscored the value of integrating innovative solutions such as parametrics.

Welcome to Artemis’ 2024 Monte Carlo Rendezvous Executive Roundtable, in which nine expert speakers from across the insurance-linked securities (ILS) space discussed the sustainability of current market conditions and returns, investor sentiment, potential growth areas, and more.

We’ve learned from sources that insurer USAA has estimated its losses from hurricane Helene at $1.15 billion, while losses from hurricane Milton are estimated to be $218 million, for a combined impact from the two storms at this time estimated at just over $1.37 billion.

The overall yield of the catastrophe bond market rose as the market repriced positions in the wake of recent hurricane Milton, but like other market indices and the performance of cat bond funds themselves, the effect of the storm has been quickly overtaken by continued positive market momentum.