Best of Artemis, week ending 4th March 2018

Here are the ten most popular news articles, week ending 4th March 2018, 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 or get our email alerts for every article we publish.

Ten most viewed articles on Artemis.bm, week ending 4th March 2018:

1. Swiss Re CEO questions “decoupling” of risk knowledge from capital
   The CEO of reinsurance giant Swiss Re, Christian Mumenthaler, has questioned the robustness of the ILS business model, asking whether the understanding of underwriting risk has become decoupled from those who provide the capital to back it.

2. AXA reported to be in discussions to acquire XL Group
   Media reports state that French insurance and investment giant AXA is in advanced talks to buy Bermudian insurance and reinsurance firm XL Group, a deal that could see two entities with related ILS investment fund operations coming together.

3. U.S. tax reforms could see some ILS structures CFC or PFIC classified: Mayer Brown
   Reforms under the new Tax Cuts and Jobs Act (TCJA), adopted in the U.S. in December 2017, means that some insurance-linked securities (ILS) structures could be classified as a controlled foreign corporation (CFC) and others could be classified as a passive foreign investment company (PFIC), according to Mayer Brown.

4. Citrus Re cat bond losses clearer, as Heritage lays out recoveries
   Catastrophe bond investors are facing over $104 million of losses from Citrus Re bond issues sponsored by Florida focused property and casualty insurer Heritage Insurance Holdings, Inc., after the company made clear it intends to proceed with recoveries under three separate issuances following the impacts of hurricane Irma.

5. Berkshire Hathaway can easily weather a $400bn mega catastrophe: Buffett
   Berkshire Hathaway’s insurance and reinsurance businesses are the most prepared to handle a $400 billion mega catastrophe loss event, while the rest of the property & casualty industry may be out of business following such an extreme loss, according to Warren Buffett.

6. Time to get used to lower property catastrophe margins: Swiss Re CEO
   The reinsurance industry has to get used to the fact that we are now in a world where underwriting margins for property catastrophe business are lower and likely to stay that way, thanks to the influence of ILS and alternative sources of capital, according to Swiss Re CEO Christian Mumenthaler.

7. Hiscox Re ILS hits $1.5bn, to expand product range to primary risks
   Hiscox Re Insurance Linked Strategies Ltd. (Hiscox Re ILS), the manager of third-party reinsurance capital funds at Hiscox, has grown its assets under management to a new high at $1.5 billion after attracting additional capital following the losses of 2017 and now plans to expand its product range too.

8. Tokio Marine brings $200m Kizuna Re II 2018 Japan quake cat bond
   Japanese primary insurance group Tokio Marine & Nichido Fire Insurance Co. Ltd. has returned to the catastrophe bond market for its latest issuance, a $200 million Kizuna Re II Ltd. (Series 2018-1) transaction that aims to secure a source of capital markets backed Japanese earthquake reinsurance protection for the sponsor.

9. Panthera Re special purpose vehicle issues $100m of ILS notes
   Panthera Re Limited, a recently registered Bermuda special purpose insurance vehicle, has issued a $100 million tranche insurance-linked securities (ILS) notes, which likely collateralize an underlying reinsurance or retrocession agreement for a sponsor that is currently unknown.

10. Akibare Re 2018 cat bond seeks $225m coverage for MS&AD insurers
    A new catastrophe bond transaction has been launched to benefit two companies of Japanese insurance group MS&AD Insurance Group Holdings, with a $225 million Akibare Re Ltd. (Series 2018-1) transaction that seeks to secure the sponsors a source of collateralized multi-peril reinsurance cover for three perils.

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 27 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.

Get listed in our MarketView directory of professionals.

View the current breakdown of the market in our range of charts, allowing you to analyse cat bond issuance.

Check out the assets under management of the ILS fund market with our investment manager directory.