Best of Artemis, week ending October 31st 2021

Here are the ten most popular news articles, week ending October 31st 2021, 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 October 31st 2021:

1. Covéa buying PartnerRe for $9bn. EXOR taking on reinsurance investments
   French mutual insurer Covéa has now agreed and signed a Memorandum of Understanding to acquire Bermuda headquartered global reinsurer PartnerRe from Italian holding company EXOR, at the same $9 billion valuation as had been on the cards in the deal that fell-apart in 2020.
2. Global reinsurance market survey points to increased buying at 1/1
   The results of our latest global reinsurance market survey, in collaboration with Reinsurance News, suggest that the use of insurance-linked securities (ILS) capacity is likely to rise again at the January 1st, 2022 renewals.
3. 40%+ chance of a $200bn catastrophe loss year in next decade: AIR
   The 1% aggregate exceedance probability insured loss (also the 100-year return period loss) from global catastrophe events has been estimated as around $320 billion by risk modeller AIR Worldwide, while the average annual is now over $100 billion.
4. Retro funds could be 70% – 80% trapped or lost: RenRe CEO O’Donnell
   Retrocessional reinsurance focused ILS investment funds and strategies could find as much as 70% to 80% of their capital trapped or lost after the challenging catastrophes of 2021, according to RenaissanceRe’s CEO Kevin O’Donnell.
5. Lloyd’s gets ILS capital support for three syndicates through London Bridge Risk
   According to CEO John Neal, Lloyd’s is on the verge of securing the backing of insurance-linked securities (ILS) capital for three of its syndicates, which we understand are the first transactions to utilise its London Bridge Risk PCC special purpose structure.
6. Property catastrophe rates to see double-digit increases in 2022: Fitch
   Property catastrophe reinsurance rates are expected to increase by double-digits in 2022, as reinsurers absorb and then react to the costs of more natural catastrophe loss events that are deemed linked to climate change, according to rating agency Fitch.
7. Howden hiring Lancashire’s Redhead for Bermuda capital markets play
   The Howden insurance and reinsurance broking group is expected to launch a new capital markets focused reinsurance unit in Bermuda and has hired Darren Redhead from Lancashire Capital Management to lead at least the third-party capital aspect of the initiative, it’s understood.
8. Ida could be $40bn, catastrophe allowances must rise: John Neal, Lloyd’s
   According to John Neal, the CEO of insurance and reinsurance market Lloyd’s, hurricane Ida has the potential to be a $40 billion industry loss event and recent catastrophe frequency and severity suggest that re/insurers catastrophe allowances must rise.
9. Retrocession buoys SCOR’s result, offsetting catastrophe claims
   Global reinsurance company SCOR has again demonstrated the value of its robust retrocession program, as these protection arrangements seemingly helped to offset some of the catastrophe claims burden experienced during the last quarter.
10. Investor terms improved in Markel CATCo buyout
    Markel CATCo Investment Management said it received a “substantial level of investor support” for its proposed buyout transaction to speed the winding up of its retrocessional reinsurance investment funds and has updated the terms to be more favourable, in response to investor feedback it seems.

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 38 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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