Best of Artemis, week ending 4th December 2016

Here are the ten most popular news articles, week ending 4th December 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

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Ten most viewed articles on Artemis.bm, week ending 4th December 2016:

1. Generali in 3rd party motor liability ILS with Horse Capital I DAC
   The catastrophe bond and ILS market looks set to see a very rare casualty cat bond type transaction as European insurance giant Assicurazioni Generali seeks a €180m or larger source of motor third-party liability reinsurance protection through a Horse Capital I DAC securitisation.

2. Latin American countries seek joint cat bond cover for quakes
   It’s been reported that a number of countries in South America are looking to sponsor a catastrophe bond to protect against earthquake risks, with the help of reinsurance giant Swiss Re.

3. Pressure on U.S. P&C insurance sector causes Fitch to turn negative
   The outlook for the U.S. property & casualty insurance sector is now negative, according to Fitch Ratings, reflecting the challenging operating environment and expectation that competition is set to increase, while profitability has been on the wane.

4. January reinsurance renewal pricing outlook uncertain: Hannover Re
   In its fourth year, the softening reinsurance market cycle continues to dampen prospectus returns for reinsurers, but with many in the sector remaining profitable and the industry RoE expected to be good, driven by benign losses and high reserve releases, the sector could struggle to remain flat at 1/1 2017, according to Hannover Re.

5. NZ quake to cost re/insurers up to NZ$5bn, business interruption key
   The recent magnitude 7.8 earthquake that struck the Kaikoura area of New Zealand could result in a cost to the economy of up to NZ$8 billion, with insurance and reinsurance potentially paying as much as NZ$5 billion (almost US$3.6 billion) of the loss, according to the country’s Reserve Bank.

6. Market unprepared for ‘silent’ cyber loss aggregation: Welsh, Sciemus
   Insurance and reinsurance companies are in the main, not sufficiently equipped to underwrite and model cyber exposure and lack the required capacity to address the rising threat of an aggregation of losses from ‘silent’ cyber attacks, according to Rick Welsh of Sciemus.

7. Reinsurance helps Bermudian insurers resilience, but ILW use drops
   During 2015 Bermuda domiciled insurers utilised a range of reinsurance solutions to insulate themselves from catastrophe events, with the level of reinsurance dependent on the peril, according to a new report from the Bermuda Monetary Authority (BMA).

8. Reinsurers remain optimistic in a challenging market: Industry leaders
   Despite the ongoing softening reinsurance market cycle that’s testing the resolve of many companies, a recent slowdown in rate declines, rational behaviour and continued innovation has left some industry leaders with a sense of optimism about the space.

9. UK’s ILS ambitions to create new re/insurance solutions: Ben Reid, EY
   The UK’s recent announcement on regulations for the development of an insurance-linked securities (ILS) market in the UK, should promote the crea. tion of new re/insurance solutions, and could also be a catalyst for growth for both the London market and the broader ILS space, according to Ben Reid, Ernst & Young LLP (EY).

10. Standard & comprehensive reporting would benefit ILS investors
    As the insurance-linked securities (ILS) space continues to evolve, increasingly becoming an integral part of the reinsurance and broader risk transfer landscape, industry experts have underlined the benefits of establishing a set of standard, and comprehensive information and reporting guidelines to assist investors in the space.

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 24 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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Artemis’ Q3 2016 Catastrophe Bond & ILS Market Report – Weather risk returns, private deals, market growth

We’ve now published our Q3 2016 catastrophe bond & ILS market report.

This report reviews the catastrophe bond and insurance-linked securities (ILS) market at the end of the third-quarter of 2016, looking at the new risk capital issued and the composition of transactions completed during Q2 2016.

Q3 saw $1.087 billion of risk capital issued from eight transactions, making it the third most active Q3 of the last decade in terms of deal volume, and one of the busiest in the market’s history in terms of number of deals. Strong investor appetite for cat bond and ILS investment saw the outstanding market size increase from the $25.174 billion recorded at the end of Q2, to $25.449 billion.

Download your copy here.