Reinsurance News

Even with a few consecutive years of ~10% pricing declines, the global property catastrophe reinsurance market can still deliver strong returns to reinsurers as long as terms, attachments and conditions all remain stable, analysts at JMP Securities have said, which would also presumably read across to third-party capital investors.

Catastrophe data aggregator PERILS has now raised its insurance industry loss estimate for the severe flooding experienced across parts of Central Europe in September 2024 due to storm Boris, increasing the total by 10% to €2.08 billion.

A proposal published by the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) calls for a natural catastrophe insurance system that includes pooling private risks, strengthening disaster risk management, and the use of catastrophe bonds to support catastrophe reinsurance availability for Europe.

Commenting on the recent announcement from MetLife, Inc. that it plans to launch Chariot Reinsurance, a new Bermuda based company that will initially act as a kind of sidecar for the company, S&P Global Ratings has highlighted how these structures provide efficient access to “on-demand” capital for their sponsors.

As the running-off of the exchange listed CATCo Reinsurance Opportunities Fund, the stock exchange listed retrocessional reinsurance strategy operated by Markel CATCo, completed this year, the company has now revealed that the net asset value of the shares rose 52% just this year as additional positive loss development was experienced.

After a field trip to Bermuda analysts at TD Cowen have concluded from their discussions with reinsurance and insurance-linked securities (ILS) market participants on the island that property catastrophe rates are coming under some pressure from retained earnings in the sector, as well as from the catastrophe bond and ILS market.

Hamilton, the Bermuda based insurance and reinsurance holding company, has continued to earn positive performance fees from activities under its Ada Capital Management third-party capital platform and its Ada Re collateralized reinsurance and retrocession underwriting vehicle, in the third-quarter of this year.

Lockton, the independent insurance and reinsurance broking group, has announced the formal launch of a new Global Parametric Insurance Practice, bringing together its parametric risk transfer expertise under one specialist unit.

AIG has announced the launch of Syndicate 2478 at Lloyd’s, which is set to be a multi-year participant on its outwards reinsurance program and is supported by third-party capital from funds under Blackstone management, channelled through the London Bridge 2 PCC structure.

The market should expect Swiss Re to continue building out its capabilities across insurance-linked securities (ILS) and alternative reinsurance capital, as the company is benefiting from their growth, while investors in Alternative Capital Partners (ACP) structures have been enjoying “very strong performance”, CFO John Dacey said today.