Best of Artemis, week ending February 12th 2023

Here are the ten most popular news articles, week ending February 12th 2023, 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 read articles on Artemis.bm, week ending February 12th 2023:

1. Turkey earthquake unlikely to impact cat bond performance: Plenum
   The devastating magnitude 7.8 earthquake that struck southern Turkey is unlikely to have a noticeable effect on the performance of catastrophe bonds, while private ILS exposure is seen as minimal, but overall insured losses of around US $1bn are expected to fall to reinsurance capital.
2. If cost-of-capital is equal to the rate of return, something has to change: Aditya Dutt, Aeolus
   In reinsurance, the industry had softened its pricing to an unsustainable degree, resulting in a situation where margins for capital providers were thin to non-existent. But, recent moves in pricing, terms and conditions are an attempt to “balance things in favour of the reinsurers,” Aditya Dutt, President of Aeolus Capital Management explained.
3. SURE upsizes new Gateway Re 2023-1 cat bond by 78% to $355m
   Coastal property insurance underwriter SURE appears to have been very well-received in the catastrophe bond market for its second issuance, upsizing its proposed $200 million Gateway Re Ltd. (Series 2023-1) transaction by roughly 78%, to secure $355 million of named storm reinsurance protection from the capital markets.
4. Weather risk transfer market is primed for innovation: Swiss Re Corporate Solutions ECM
   There’s a lot of room for innovation when it comes to weather risk transfer solutions, and with the energy transition and adoption of renewables providing additional opportunities, Rishu Ranjan of Swiss Re Corporate Solutions is optimistic for the future.
5. Hannover Re grows retrocession protections by 56% at January renewals
   During a January 1st renewal season the reinsurer describes as a very challenging market environment for all participants, Hannover Re secured an increase in natural catastrophe retrocession, including the expansion of its capital markets backed K-Cessions quota share sidecar facility of almost 85% to $831 million, the biggest it’s ever been.
6. Climate change to prolong reinsurance hard market: Goldman Sachs
   Equity analysts at Goldman Sachs see climate change both as a driver of increasing underwriting opportunities for the global insurance and reinsurance market, as well as a key factor that can prolong the current hard market pricing environment.
7. Alternative asset manager Brookfield’s reinsurance entity to acquire Argo in $1.1bn deal
   Brookfield Reinsurance, the Bermuda-based reinsurance entity of Brookfield Asset Management Inc., the giant Canadian headquartered alternative asset manager, has entered into a definitive agreement to acquire specialty re/insurer Argo Group International Holdings, Ltd. in an all-cash transaction valued at $1.1 billion.
8. SCOR buys less catastrophe retro. ILS diversification assisted: Conoscente
   Global reinsurance company SCOR purchased less catastrophe retrocession at the renewals given its own property catastrophe book shrank again, but still the diversification between traditional and ILS market retro sources was a benefit, Jean-Paul Conoscente, CEO of SCOR Global P&C said.
9. European property cat rates up 60% in two years, highest since 2007: Guy Carpenter
   Property catastrophe reinsurance rates-on-line in Continental Europe rose strongly for the second consecutive year at the January 1st 2023 renewal season, according to the latest data from broker Guy Carpenter.
10. Cat bond market finds equilibrium as spreads stabilise higher: Plenum
    Spreads in the catastrophe bond market, in terms of both new primary cat bond issuance and secondary marks, appear to have stabilised, signalling the market finding a new equilibrium at higher premiums, Plenum Investments has said.

This is not every article published on Artemis during the last week, just the most popular among our readers over the last seven days. There were 33 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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