Best of Artemis, week ending September 19th 2021

Here are the ten most popular news articles, week ending September 19th 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 September 19th 2021:

1. Ida will be one of the costliest U.S. mainland hurricanes: Aon
   Hurricane Ida is expected to become one of the costliest tropical storm impacts ever to affect the mainland United States, according to insurance and reinsurance broker Aon.
2. Talk of renewal rate reductions “out of the window” – Peel Hunt analysts
   Having visited the Lloyd’s insurance and reinsurance market last week and spoken with some of its major players, analysts at peel Hunt concluded that with the renewals approaching talk of rate reductions are now “out of the window.”
3. Equity investors query reinsurer’s use of ILS and ESG quality: Autonomous’ Ritchie
   Equity investors focused on the reinsurance sector question whether insurance-linked securities (ILS) deliver cost-of-capital benefits, while also finding it hard to consider reinsurers an ESG appropriate investment, Andrew Ritchie, Partner, Insurance Research at Autonomous Research LLP said.
4. NFIP’s reinsurance & cat bonds on-watch following RMS estimate
   A hurricane Ida industry loss estimate update from RMS has put the National Flood Insurance Program’s (NFIP) reinsurance counterparties and catastrophe bond investors on-watch for potential losses, as the estimate suggests the traditional reinsurance component at-least is likely to attach and face losses.
5. SCOR “kicked itself” for not renewing mortality bonds: CEO Rousseau
   French reinsurance company SCOR “kicked itself” for not having renewed its mortality catastrophe bonds in the past, the firms new CEO Laurent Rousseau explained.
6. Swiss Re “very active” in creating new ILS products: Christian Mumenthaler, CEO
   Global reinsurance firm Swiss Re is “very active” in creating new products for insurance-linked securities (ILS) investors, according to its CEO, who also sees the need for the capital markets to play a role in protecting against other risks that affect economies.
7. Reinsurers evolve to coexist with ILS capital, but there are risks: Moody’s
   Reinsurance companies have almost completed an evolution of their business models to enable them to coexist with alternative capital and insurance-linked securities (ILS), according to Moody’s, but the rating agency noted that there are risks to this engagement.
8. Sidecar capacity – demand outpacing supply: Shiv Kumar, GC Securities
   Demand for alternative reinsurance capacity to support sidecars and quota share structures is outpacing supply, according to Shiv Kumar who explained that the reinsurance sidecar market has grown despite facing challenges in recent years.
9. Collateralized reinsurance rises to $50bn on evident pricing discipline: AM Best
   The collateralized reinsurance market is estimated to have grown to around US $50 billion by the end of the first-quarter of 2021, with capacity having increased slightly following a more challenging period, according to AM Best.
10. Allstate says reinsurance recoveries to reduce $1.4bn hurricane Ida loss
    US primary insurance carrier Allstate expects a $1.4 billion gross loss from recent hurricane Ida, but said that this will be reduced significantly to an estimated $631 million, pre-tax, thanks to what appear significant reinsurance recoveries from its excess-of-loss program.

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 37 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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