Best of Artemis, week ending January 9th 2022

Here are the ten most popular news articles, week ending January 9th 2022, 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 January 9th 2022:

1. Property catastrophe rates up 10.8% at January 2022 renewals: Guy Carpenter
   Property catastrophe reinsurance rates and pricing rose by 10.8% year-on-year at the January 2022 reinsurance renewals, which broker Guy Carpenter explained saw a market that bifurcated between loss-affected and non-loss affected programs.
2. Catastrophe bonds break record in 2021, as market expands again: Report
   The market for catastrophe bonds and related insurance-linked securities (ILS) saw records broken once again in 2021, as annual issuance surpassed the previous high set a year ago and reached $14 billion across pure property cat bonds, other line of business cat bonds and private deals, according to Artemis’ data.
3. ILS financing plays renewal role again, as deployable capital fell on trapping
   Deployable capital in the insurance-linked securities (ILS) market declined at the end of 2021 as the January 2022 reinsurance renewals approached, which resulted in some ILS investment managers making use of financing arrangements, we’re told.
4. ILS fund capacity reduction a surprise for buyers: Vickers, Gallagher Re
   At the January 2022 reinsurance renewals, some buyers of protection were left surprised after insurance-linked securities (ILS) fund capacity proved to be even less abundant than previously assumed, according to James Vickers, Chairman International, Reinsurance at Gallagher Re.
5. Nuclear liability ILS deals renewed, as investor commits again
   A significant institutional investor has again committed to supporting nuclear liability risks in insurance-linked securities (ILS) form, with the renewal of two deals covering risks of corporate nuclear power operators in a format considered akin to a private catastrophe bond.
6. Catastrophe retro rates up 15% at renewals, 75% since 2017: Howden
   According to international broking group Howden, non-marine catastrophe retrocession rates-on-line for excess-of-loss coverage rose by an average of 15% at the key January 1st 2022 renewal season, outpacing property catastrophe treaty reinsurance rates-on-line by around 6%.
7. Stone Ridge has “highest forward conviction” for reinsurance: CEO Stevens
   Ross Stevens, the CEO of Stone Ridge Asset Management, a New York based asset manager with a focus on alternative risk premia strategies including reinsurance and insurance-linked securities (ILS), has declared that right now his firm has the highest forward conviction on the reinsurance sector since its launch in 2013.
8. European property renewals harden, with some 50%+ rate increases: Gallagher Re
   Some European property catastrophe reinsurance programs saw significant rate increases at the January 2022 renewals, as negotiations reverted back to the more traditional subjects of price and risk appetite, according to Gallagher Re.
9. ILS capital expands in 2021, but up to 5% of reinsurance trapped: GC & AM Best
   Alternative reinsurance capital levels in the global industry grew 3.7% over the course of 2021, outpacing the 2.7% growth of traditional reinsurance industry capital, according to the latest estimate from broker Guy Carpenter and rating agency AM Best.
10. AIG’s Validus kicks off 144A cat bonds for 2022, with $400m Tailwind Re
    Validus, one of the AIG reinsurance brands under AIG Re, is the first to complete a 144A catastrophe bond issuance in 2022, starting the year off with a successful $400 million Tailwind Re Ltd. (Series 2022-1) transaction, that renews a capital market backed source of retrocession for the company.

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 30 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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