Reinsurance News

Aspen Capital Markets, the third-party and alternative reinsurance capital management unit of global re/insurer Aspen, continued to expand its funding for third-party capital and insurance-linked securities (ILS) vehicles, as total capital sourced reached $1.7 billion by the end of 2023.

The CRESTA organisation, that tracks insurance industry losses outside the United States, has provided its first estimate of insurance market losses for the January 1st M7.5 earthquake that hit near the Noto Peninsula in Ishikawa prefecture, Japan, pegging the total at US $1.9 billion.

AmRisc, LLC, a coastal commercial property insurance specialist subsidiary of Truist Insurance Holdings, has raised $325 million of capacity for a collateralized reinsurance sidecar named Trouvaille Re Ltd., with alternative investment firm Stone Point in support.

Broking giant Aon has noted a buyers market for property catastrophe reinsurance at the April renewals, with flat to slightly down pricing and an environment where there has been a “dramatic shift” towards ample capacity, within which ILS market growth is a key factor.

According to Lloyd’s Chief Financial Officer (CFO), Burkhard Keese, the London Bridge 2 PCC insurance-linked securities (ILS) structure is targeted to see around $1 billion of capital flow in 2024, so has the potential to surpass the activity seen through the structure in 2023.

2023 saw strong growth for insurance and reinsurance linked investment manager Nephila Capital’s specialty lines focused Syndicate 2358 at Lloyd’s, which more than doubled both its gross written premium and its profit for the year.

The insurance-linked securities (ILS) market needs efficient trapped capital solutions to provide greater certainty and understanding of capital flows and velocity in the space, with the absence of such solutions seen as a potential barrier to reigniting interest in the private and collateralized reinsurance side of the market.

The insurance industry loss from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns is estimated to be above the $1.5 billion of the Costa Concordia disaster, with as much as $4 billion in industry losses anticipated.

Syndicate 2357 at Lloyd’s, which is the flagship syndicate operated by Nephila Capital, a leading dedicated investment manager in the insurance-linked securities (ILS), weather and catastrophe reinsurance space, has reported a 65% increase in profits for 2023, as its combined ratio came in at a very low 25.5% for the year.

The reinsurance market is expected to bear the brunt of losses from the collapse of the Francis Scott Key Bridge in the US city of Baltimore after container ship Dali struck one of its support columns, which rating agency AM Best said will add to the increasing challenges of reinsurance availability.