Insurance Linked Investments

U.S. mortgage insurer Radian Guaranty, part of the Radian Group, has successfully completed its first mortgage insurance-linked securities (ILS) transaction, securing a slightly upsized $434 million from the Eagle Re 2018-1 Ltd. transaction, while simultaneously adding another $21 million of excess-of-loss reinsurance coverage.

The toll of destruction from the ongoing outbreak of California wildfires continues to rise, as the number of structures destroyed has risen again to 12,406, suggesting an increasing loss for insurance, reinsurance and ILS market interests and pointing to an industry loss at the high-end, or above, current estimates.

Further appointments and a new hire have been announced by Hiscox Re & ILS, the reinsurance and insurance-linked securities (ILS) division of global re/insurer Hiscox, as the division continues to build out its footprint in advance of the key renewal season.

According to specialist insurance-linked securities (ILS) and reinsurance investments manager Twelve Capital, one of the USAA sponsored catastrophe bond tranches and certain private ILS transactions are at risk of facing losses due to the ongoing California wildfire outbreak.

Losses faced by the retrocession market could influence reinsurance renewal pricing in 2019, as well as more broadly some lines of insurance, as impacts from recent catastrophe events in 2018 as well as loss creep from 2017 have resulted in a capital event for that niche of the industry, according to analysts.

Paul Jardine, of Catlin and XL Catlin experience, is the latest senior figure to join the advisory board of digital risk trading insurtech start-up Akinova.

The number of residential and commercial structures destroyed by the ongoing outbreak of three California wildfire events has risen again, suggesting an increasing level of loss for the insurance and reinsurance industry.

The acquisition of the world’s largest insurance-linked securities (ILS) and reinsurance linked investment fund manager Nephila has now been completed by Markel Corporation, positioning Markel itself as now the largest manager of third-party reinsurance capital.

Equity analysts from investment bank Credit Suisse believe that ongoing California wildfire outbreaks could cost the insurance and reinsurance industry between $5 billion and $10 billion, although they do not believe this would be sufficient to push any of the major insurers they cover to a fourth-quarter loss.

The cost of insurance claims paid following hurricane Michael’s impacts in Florida has risen by another almost 15% in just one week, nearing $3 billion, according to updated claims information and data from the state insurance regulator.