Reinsurance News

US primary insurer Allstate has reported January catastrophe losses of $325 million, with the majority of this coming from just two events, suggesting the potential for further loss aggregation under its aggregate reinsurance cover from its catastrophe bonds.

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case has reached a proposed settlement with fronting specialist Clear Blue Insurance that sees an agreement reached on the bankruptcy plan and in relation to funds specifically held in one of the debtor vehicles, Vesttoo Bay XIV Limited.

Expansive broking group Howden has acquired ARM Group Holdings, parent of captive specialist insurance manager Alternative Risk Management. But it’s the potential to utilise this new acquisition for establishing segregated cell structures for collateralised reinsurance and ILS transactions where this could get more interesting.

An innovative parametric insurance product that provides protection to fund repairs following storm damage to coral reefs in Hawaii has been renewed and its coverage expanded, while global reinsurance firm Munich Re is again backing the cover, which is arranged by WTW.

Global insurance giant AIG secured a “tremendous outcome” at the January 2024 reinsurance renewals, according to CEO Peter Zaffino who explained that AIG broadened its property catastrophe coverage at 1/1.

The Texas Windstorm Insurance Association (TWIA) could need even more reinsurance limit for the 2024 wind season, as its exposure growth drove its Actuarial and Underwriting Committee to recommend the Board sets a 1-in-100 year PML for funding purposes at a new high of $6.5 billion.

The insurance industry loss estimate from severe storms that affected eastern Australia through the Christmas period has been initially estimated at AU $1.395 billion (around US $905m) by PERILS AG.

African Risk Capacity Limited (ARC Ltd.), the financial affiliate and underwriting entity of the African Risk Capacity (ARC) Group, has entered into a landmark US $11.7 million partnership with the United States Government, to help expand access to parametric insurance and increase the size of its risk pool.

The Texas Windstorm Insurance Association (TWIA) may require more reinsurance limit than had been originally thought, as modelled data shows the insurer of last resort could look for as much as $3.7 billion for its 2024 renewal, almost $1.5 billion up on TWIA’s 2023 reinsurance and catastrophe bond purchase.

US primary property and casualty insurer The Hartford achieved its goals of adding secure and diversified reinsurance capacity with its latest $200 million Foundation Re IV Ltd. (Series 2023-1) catastrophe bond, which Chief Financial Officer Beth Bombara said helped to raise the top of its reinsurance tower.