Your search for “secondary market prices returns”

The global reinsurance market now appears to have returned to a pre-soft market state of providing capital protection, rather than earnings protection, Fitch Ratings has said.

Rating agency Moody’s Investors Service said this morning that while there are multiple factors driving up reinsurance pricing, one of them is the increased focus on returns in the insurance-linked securities (ILS) investor and ILS manager community.

The current hard market for insurance-linked securities (ILS) and catastrophe bonds is equally as hard as the post-Katrina year of 2006, according to new analysis from consultancy Lane Financial.

Realised losses from hurricane Ian for the catastrophe bond market could end up being as little as half the initial, and still current, mark-to-market decline in the outstanding cat bond market, sources have told Artemis and our analysis also backs this up.

The catastrophe bond market is very well-positioned, with cedent interest in utilising cat bonds as reinsurance risk transfer tools on the rise, while pricing has already risen high enough to attract investors to deploy more capital, according to GC Securities Shiv Kumar.

The market for natural catastrophe reinsurance underwriting remains “very hard” at this time, according to Swiss Re’s CEO Christian Mumenthaler, who also noted today that alternative capital is “not as keen” as it was to enter there.

There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan.

Insurance-linked securities (ILS) fund strategies delivered a second month in a row of muted performance in March 2022, as some catastrophe exposure and continued price pressure in catastrophe bonds, dented returns for some strategies, but overall the sector remains positive for Q1, further underscoring the decorrelation potential for investors.

The market for retrocessional reinsurance has been one of the most capital constrained and loss impacted over the last few months, which has resulted in an adjustment to priorities for those writing retro covers, while buyers are having to adapt to the demands of capital.

Aetna, the health, medical and benefits insurance unit of CVS Health, has returned to the capital market and insurance-linked securities (ILS) for issuance of its thirteenth Vitality Re health insurance catastrophe bond structure, aiming to secure $200m of reinsurance from a Vitality Re XIII Ltd (Series 2022) transaction.