Reinsurance News

Capital raised in reinsurance and insurance-linked securities (ILS) year-to-date remains far below the level required to threaten the current hard market cycle, according to analysts at J.P. Morgan.

The global insurance market is expected to continue experiencing a hard market in non-life risks through the rest of this year at least, with property risks an area of particular focus and also growth as premiums should continue to expand, Swiss Re has said.

A new Bermuda based Class 3 re/insurer and segregated accounts company has been set up by reinsurance broker Inver Re, a unit of the Ardonagh Group, with Inver Re (Bermuda) SAC Ltd. set to be used both as a captive vehicle and for collateralized reinsurance arrangements.

Global Atlantic Financial Group, the US life, retirement and annuities insurance and reinsurance company, has now closed on a successful more than $2.4 billion third-party capital raise for its second reinsurance sidecar structure, Ivy II.

European property and casualty (P&C) run-off specialist company Marco Capital Holdings Limited has now acquired the second former Credit Suisse ILS run Guernsey based reinsurance company Kelvin Re Limited.

Australian primary insurance giant Insurance Australia Group (IAG) has announced the renewal of its aggregate catastrophe reinsurance cover at more stringent terms, with less protection secured and at a higher attachment point for the second year running.

Global insurance and reinsurance broker Aon has completed a hurricane and earthquake parametric insurance program for the Government of Puerto Rico, designed to lower the region’s insurance obligation to the U.S. Federal Emergency Management Agency (FEMA).

Insurance-linked securities (ILS), or alternative, capital is expected to grow to become a $150 billion market by 2030, but traditional reinsurance capital is expected to grow at a faster pace over the same period, according to an estimate from analysts at investment bank Berenberg.

Velocity, the catastrophe exposed property insurance specialist managing general agency (MGA) and holding company operation, has now launched its new E&S carrier Velocity Specialty Insurance Company after securing an A- (Excellent) rating from AM Best.

At the mid-year reinsurance renewals, US property catastrophe risk-adjusted rate increases were on average the highest in 17 years, with even loss-free accounts generally up by +20% to +50%, according to broker Guy Carpenter.