Reinsurance News

Tower Hill Insurance Exchange has renewed its Florida reinsurance tower at close to $2 billion in size, securing $120 million more limit than its expiring program.

The Florida reinsurance renewals on June 1st are all but done, according to sources and reports, with capacity availability far less of an issue than a year ago, or at the renewals completed earlier in 2023.

With the Florida reinsurance renewal now all but completed, broker Howden Tiger has said that risk-adjusted property- catastrophe reinsurance was pricing up by 33% on average at the 1 June renewals.

With mid-year reinsurance renewals done, Ernie Garateix, CEO of Heritage Insurance Holdings, said recently that the new Citrus Re catastrophe bond his company has sponsored will be complementary to its renewed program.

Broker WTW said today that the innovative parametric hurricane insurance program to protect the Mesoamerican coral reef has been expanded again, with AXA Climate as the sole capacity provider and a refined parametric trigger structure utilised this year.

Insurance-linked securities (ILS) capital is increasingly becoming attracted to and getting more comfortable with deploying to cover cyber insurance and reinsurance risks, according to broker Guy Carpenter.

Toka Tū Ake EQC, or the New Zealand Earthquake Commission, has lifted the top of its reinsurance tower to a new high of $8.2 billion at this years renewal, with the addition of its first Totara Re 2023-1 catastrophe bond helping it diversify its sources of protection.

Captive insurance structures are still largely a self-insurance tool for their sponsors, but there is a market there for captives that might look to offload risks, or books of business, towards the end of their lives, David Gibbons of PwC Bermuda told us in a recent video interview.

Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle that counts some insurance-linked securities (ILS) market sources among its capital backers, is aiming to expand its business through the rest of this year, with more third-party capital targeted to support the build out of its portfolio.

Palomar Insurance Holdings has purchased a reinsurance tower extending to $2.68 billion for earthquake events, with multi-year ILS capacity from its catastrophe bonds now providing $875 million of limit, thanks to its recently completed fourth cat bond deal.