Monte Carlo Reinsurance Rendezvous 2019

monaco-reinsurance-monte-carlo-rvsThe 2019 Monte Carlo Reinsurance Rendez-Vous de Septembre is upon us, the 63rd edition of the reinsurance, insurance and insurance-linked securities (ILS) gathering in Monaco on the south coast of France, where insurers, reinsurers, brokers & ILS funds meet to discuss the next major reinsurance renewals season of January 2020.

Since 1957 reinsurance companies, insurer clients, investors and service providers have met in the sun (and occasionally rain) in Monte Carlo, Monaco at the reinsurance Rendezvous event, making it a busy time for analysis, news and insight on the market. These days, the ILS fund market is a fixture at this industry conference as well.

This page details our coverage of the 2019 Monte Carlo Reinsurance Rendez-vous in chronological order (most recent at top), including some of the pre-Monte Carlo RVS reports, media briefings from brokers and reinsurers, coverage of insightful reports or newsworthy highlights from the event itself, as well as all of the interviews we conduct.

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Latest Monte Carlo Rendezvous Reinsurance news:

Don’t be too dependent on capital markets backed retro, Moody’s warns reinsurers
September, 11th 2019 – There is a distinction between reinsurance firms that purely rely on retrocession, often from alternative capital, to support their gross underwriting, and those that target earning fee income by managing it for third-party investors, rating agency Moody’s says.

Increasing availability of data to support ILS expansion: Schuh, Swiss Re
September, 11th 2019 – The availability of advanced data analytics is expected to increase and in some instances, this could accelerate the broadening of risks that are placeable in the insurance-linked securities (ILS) market, says Swiss Re’s Global Head of P&C Solutions, Eric Schuh.

Transparency required on trapped collateral: Darren Redhead, Kinesis
September, 11th 2019 – How transparent are ILS funds being when they factor in trapped collateral into their estimated returns? This was the question posed by Darren Redhead, chief executive of Lancashire-owned Kinesis Capital Management when he spoke to Artemis on the eve of the Rendez-Vous de Septembre in Monte Carlo.

Reinsurance prices to be flat to moderately rising in 2020: Moody’s
September, 11th 2019 – Reinsurance pricing momentum through renewals in 2020 is expected to range between flat to moderately rising, according to findings from Moody’s Investors Service.

Tech, models & proximity to risk to drive ILS growth: Grimes, Fitch
September 10th, 2019 – Insurance-linked securities (ILS) market growth is expected to be driven by technological developments, new catastrophe risk models and ILS funds ability to get close to the source of the risk.

Swiss Re’s commitment to cat bond market always strong: CEO, Mumenthaler
September 10th, 2019 – Reflecting on the successful return of his company to the catastrophe bond market in 2019, Christian Mumenthaler, the CEO of reinsurance firm Swiss Re, explained that the reinsurer has always shown a commitment to the ILS market.

ILS a “strategic component” for PartnerRe: CEO Emmanuel Clarke
September 10th, 2019 – The use of insurance-linked securities and third-party reinsurance capital is a “strategic component” of the business model for reinsurer PartnerRe, its CEO told us.

Retro capacity “tight but sufficient” for 1/1 2020 renewals: Willis Re’s Moore
September 10th, 2019 – Capacity for retrocessional reinsurance is expected to remain tight at the upcoming January 2020 renewal season, but will still prove sufficient, Graeme Moore, CEO Willis Re Speciality expects.

Third catastrophe loss year could alter ILS: Millette, Hudson Structured
September 10th, 2019 – A third year of sizable catastrophe losses could see some ILS investors exit the market and “change the capital market mechanism”, according to Michael Millette, founder and managing partner of Hudson Structured Capital Management.

Swiss Re optimistic on ILS market‘s prospects
September 10th, 2019 – The continued availability of insurance-linked securities (ILS) capital in 2019 highlights the “strategic partnership” between sponsors and capital markets investors, according to reinsurance firm Swiss Re.

Hamilton ILS expansion complements core underwriting: CEO Pina Albo
September 10th, 2019 – Hamilton Insurance Group, the Bermuda based insurance and reinsurance holding company, sees its expanding insurance-linked securities (ILS) and third-party capital capabilities as complementary to its core underwriting strategy, CEO Pina Albo explained to us.

Hannover Re forecasts improved treaty reinsurance pricing into 2020
September 10th, 2019 – Everyone in reinsurance, from major reinsurance firms to the smallest insurance-linked securities (ILS) player, is anticipating further rate firming at the January 2020 renewals, with Hannover Re among the latest to join the calls for higher priced protection.

It’s been an education: Leadenhall CEO Albertini
September 9th, 2019 – Signs of an impending recession will reaffirm support for ILS as an asset class, in spite of more muted investor sentiment over the past 12 months, according to Luca Albertini, chief executive and founding partner at Leadenhall Capital Parners LLP.

AXIS “proud” of ability to raise new third-party capital, bring in new investors: Benchimol
September 9th, 2019 – Bermuda domiciled specialty insurer and global reinsurer, AXIS Capital Holdings, is proud of its ability to raise new capital and bring in new investors in what’s been a challenging year for third-party capital raises, says President and Chief Executive Officer (CEO), Albert Benchimol.

Tremor provides efficiency for the re/insurance system: W. R. Berkley Corporation’s Emmendorfer
September 9th, 2019 – W. R. Berkley Corporation recently revealed an investment in programmatic reinsurance risk placement marketplace provider, Tremor Technologies, Inc., technology that the re/insurer told us can deliver efficiency to the entire market.

A new reinsurance business model is emerging: Shiv Kumar, GC Securities
September 9th, 2019 – A new reinsurance business model is emerging and alternative capital and insurance-linked securities (ILS) investors sit right at the heart of it, according to Shiv Kumar, President, GC Securities.

ILS market going deeper, but needs to price for trapped collateral: Experts
September 9th, 2019 – Panellists at the annual Munich Re insurance-linked securities (ILS) roundtable event in Monte Carlo today said that the ILS market is ready and able to go deeper into reinsurance.

More rate needed for reinsurance to be sustainable long-term: Swiss Re
September 9th, 2019 – The reinsurance industry needs to secure more rate increases for the industry to reach the point of a long-term sustainable market, according to Swiss Re.

Hannover Re facilitates record number of ILS issuances in 2019: Sven Althoff
September 9th, 2019 – Hannover Re’s role in the insurance-linked securities (ILS) market continues to be a significant contributor to the reinsurance firms earnings, with 2019 looking set to beat records as the firm facilitates an increasing number of ILS catastrophe bond placements and ILS trades.

Capital markets a natural way to overcome inefficiency: Peak Re CEO, Franz Josef Hahn
September 9th, 2019 – The use of the capital markets and insurance-linked securities (ILS) in reinsurance is “absolutely necessary” to increase the efficiency of insurance products and capital, according to the CEO of reinsurer Peak Re.

Don’t dilute the opportunity: Frank Majors, Nephila Capital
September 9th, 2019 – The past 12 months have proved the ILS markets are rational, thinks Frank Majors, co-CEO at Nephila Advisors, with investors demonstrating both staying power and price discipline.

ILS funds had to showcase that cycle still existed: Jeworrek, Munich Re
September 8th, 2019 – Losses borne out of major natural catastrophe events in 2017 and 2018, including Cyclone Jebi in Japan last year and the record-breaking California wildfires, has limited the supply of “high-volume, cheap retrocession” according to Torsten Jeworrek, member of the board of management, Munich Re.

Significant rate increases could open ILS floodgates: Dubinsky, Willis Re Securities
September 8th, 2019 – Reinsurance rates and pricing remain only just sufficient to support ILS and growing reinsurance linked investments for those for whom the asset class is core, but should rates continue to rise further inflows from additional investors can be expected.

Reinsurers have to find new ways to create value, Swiss Re acknowledges
September 8th, 2019 – The reinsurance industry faces an ongoing evolutionary change of its business model and a continued abundance of capital, which is driving home the need for new revenue streams to be found, as value creation for clients remains key.

“Very strong” pick up in cat bond issuance expected: Aon’s Schultz
September 8th, 2019 – The catastrophe bond market is forecast to spring back to life later this year, with a “very strong” pick up in issuance expected, according to Aon’s Paul Schultz.

Aon launches reinsurance auction tech for Jan 2020 renewals
September 8th, 2019 – Broking giant Aon has announced the launch of auction technology which it is making available for clients to use at the upcoming January 2020 reinsurance renewals.

Risk models need to be recalibrated: Bentley, Guy Carpenter
September 8th, 2019 – The industries risk models “need to be recalibrated” in the wake of two years of catastrophe losses that have delivered significant loss creep, as well as to account for the changing climate, according to Robert Bentley, CEO, Global Strategic Advisory, Guy Carpenter.

Ten pre-Monte Carlo thoughts & some reading material
September 7th, 2019 – With the great and good of the reinsurance and insurance-linked securities (ILS) industry descending on Monte Carlo for the 63rd edition of the Reinsurance Rendez-Vous de Septembre event, we thought those travelling here may like some reading  material and thoughts on topics for discussion at the event.

ILS growth hinges on ability to recover from recent losses: Grimes, Fitch Ratings
September 6th, 2019 – Insurance-linked securities (ILS) market growth over the coming years hinges on the ability of ILS funds and managers to demonstrate they can recover from recent catastrophe losses and adapt their business models to better cope with future ones.

An educational & reassuring year for the ILS market: Paul Schultz, Aon
September 6th, 2019 – The past 12-months have been both educational and reassuring for the insurance-linked securities (ILS) market and its participants, as the market learned that its structures do in the main respond as designed.

Swiss Re combines ILS & retro in new Alternative Capital Partners unit
September 5th, 2019 – Global reinsurance firm Swiss Re is re-organising its insurance-linked securities (ILS) and retrocessional capabilities, merging ILS and retro teams within one new unit named Alternative Capital Partners (ACP).

ILS capital now more selective, modest retreat shows: Fitch
September 5th, 2019 – While capital inflows have begun again in the insurance-linked securities (ILS) sector, the fact that they took a pause and ILS capacity retreated slightly before this shows that the ILS market has become more selective, according to Fitch Ratings.

Cat bond market “here to stay” despite 2019 lull: Appleby’s Brad Adderley
September 5th, 2019 – There has been a distinct slowdown in cat bond issuance throughout 2019 after the heavy loss experiences of the past two years, but Appleby’s Brad Adderley maintains that the market is “here to stay” and remains poised for further growth in the years ahead.

Firming possible for “next three to four years”, Stephen Catlin says
September 4th, 2019 – Rate firming across insurance and reinsurance markets could persist for the “next three to four years” the CEO of Convex Group told the Financial Times.

Alternative capital flat through H1 2019, traditional rises 10%: Willis Re
September 4th, 2019 – Alternative reinsurance capital, largely contributed by insurance-linked securities (ILS) funds, stayed roughly flat through the first-half of 2019, but traditional reinsurers benefited from their investment returns to post 10% capital growth.

SCOR to place ILS at heart of “reinsurance company of tomorrow”
September 4th, 2019 – France headquartered global reinsurance firm SCOR is aiming to become the “reinsurance company of tomorrow” with its latest strategic plan, part of which also includes capitalising on its position in the insurance-linked securities (ILS) market.

Climate change risk perception contributes to ILS slowdown: Fitch
September 3rd, 2019 – Among all the reasons for inflows of alternative reinsurance capital into insurance-linked securities (ILS) slowing down over recent months, Fitch Ratings believes that climate change is a factor.

Alternative capital nibbles reinsurance margins, commoditisation continues: S&P
September 3rd, 2019 – While the reinsurance sector faces a continued commoditisation of its business, alternative reinsurance capital from the insurance-linked securities (ILS) market and investor base is still “nibbling at their margins,” S&P said today.

Cheaper capital & inventive origination key to reinsurance evolution: A.M. Best
August 29th, 2019 – As traditional reinsurance firms continue to grapple with challenging market conditions and high-levels of competition, rating agency A.M. Best notes that access to cheaper capital and inventive ways to source risk will continue to be key to the evolution of reinsurance.

Convergence capital, the “new norm” for reinsurers to stay competitive: S&P
August 28th, 2019 – Third-party reinsurance or alternative capital has become a “new norm” for reinsurers as they seek to remain competitive, meaning that so-called convergence capital from the insurance-linked securities (ILS) market will remain key.

Gradual pick-up of ILS transactions expected in Asia: Fitch
August 22nd, 2019 – Insurance-linked securities (ILS) and catastrophe bond activity is expected to gradually accelerate in the Asia region, providing investor interest in the ILS asset class remains strong, according to Fitch Ratings.

Firm reinsurance rates to persist through January 2020 renewal: Fitch
August 20th, 2019 – The firm(er) reinsurance market conditions seen of late are expected to persist through the key January 2020 renewals, according to analysts at Fitch Ratings.

California wildfire reinsurance may rise 30%-70% as market smarts from losses: S&P
August 16th, 2019 – Rates for renewals of California wildfire exposed reinsurance programs or coverage could see increases of as high as 30% to 70%, as both traditional and alternative markets smart after two heavy loss years, according to S&P Global Ratings.

Expect more re/insurance & ILS convergence through M&A: S&P
August 13th, 2019 – Mergers and acquisitions (M&A) activity is expected to continue driving greater convergence of traditional insurance and reinsurance with the insurance-linked securities (ILS) market, S&P Global Ratings expects.

Re/insurers to partner with governments & capital markets on cyber risk: S&P
August 9th, 2019 – Given the enormous economic loss potential associated with cyber risks, rating agency Standard & Poor’s feels it inevitable that insurance and reinsurance firms will look to both the government and capital markets to help in boosting available cyber risk capacity.

Reinsurer cat exposure up, retro flat, says S&P. Capital dynamics evolving?
August 8th, 2019 – Some global reinsurance players have been increasing their exposure to catastrophe risks, taking advantage of higher premium rates available, but there hasn’t been a noticeable uptick in retrocession buying as a result, according to S&P Global Ratings.

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All of Artemis’ coverage from the 2018 Monte Carlo Rendezvous can be found here.

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