Reinsurance News

Asia Pacific reinsurance buyers have been facing the same renewal pressures as seen at the beginning of the year, at April 1st, but the supply-demand dynamic has moderated somewhat, according to Aon Reinsurance Solutions APAC CEO George Attard.

Cyclone Gabrielle’s impacts in New Zealand are estimated to have caused an insurance and reinsurance industry loss of NZ $1.543 billion by PERILS AG.

PartnerRe, the Bermuda headquartered reinsurance company, continued to cede a significant amount of premiums to its main insurance-linked securities (ILS) vehicle Lorenz Re in 2022, but signalling the effects of loss activity, the firm’s reinsurance recoverable from segregated cells of the structure soared.

Citizens Property Insurance Corporation of Florida, the not-for-profit provider of property insurance to those unable to get private market coverage, is planning a significant spend to secure a further $4.2 billion of reinsurance and risk transfer in advance of this years hurricane season.

The collateralized reinsurance sidecar segment of the insurance-linked securities (ILS) market could be the last to rebound, as investors remained “skittish” of these structures around the beginning of the year, Cory Anger of GC Securities said.

London market insurance and reinsurance players need to be able to attract and efficiently deploy third-party capital, if they are to take advantage of the growth opportunities available to them, rating agency AM Best has said.

The Florida homeowners property insurance segment of the market is facing significant challenges after a costly year in 2022, which left the group of main carriers tracked by Fitch Ratings facing a 72% decline in shareholder’s equity.

The opportunity cost-of-capital is no longer cheap and therefore reinsurance pricing and returns delivered to ILS investors have to stabilise at higher levels than before, leading analysts at investment bank Berenberg to suggest the hard market will be sustained, while ILS inflows will be moderated for a time.

Oxbridge Re Ltd., the Cayman Islands based reinsurance firm with a Gulf Coast risk focus, has begun the initial offering of digital or tokenized reinsurance securities named DeltaCat Re, with the capital set to support collateralized reinsurance contracts underwritten via its sidecar structure, Oxbridge Re NS.

The Insurance Council of New Zealand (ICNZ) has recorded more than 40,000 claims for Cyclone Gabrielle totalling approximately $890 million, of which roughly $70 million has been paid.