Reinsurance News

A decline in surplus, reserve adequacy trending lower, underwriting losses driven by storms and hurricanes, and a generally unsettled Florida P&C insurance market environment, all of which have contributed to a downgrade for Florida Farm Bureau, according to AM Best.

Arch Capital Group, the Bermuda headquartered insurance and reinsurance specialist, has sponsored the issuance of two new series of preferred shares from its Voussoir Re Ltd., collateralized reinsurance sidecar style special purpose insurance (SPI) vehicle.

Current market conditions make allocating to the catastrophe bond asset class a particularly attractive prospect for investors at this time, according to Twelve Capital Founding Partner & Group CIO, Dr. Urs Ramseier.

Reinsurance and retrocession pricing is set to benefit from an expected continued reduction in available alternative or insurance-linked securities (ILS) capital, according to Moody’s Investors Service.

The severe convective weather, thunderstorms, large hail and tornadoes that affected the United States this week is expected to aggregate to drive hundreds of millions of dollars in insured losses, according to Aon’s Impact Forecasting.

Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle which counts among its backing a significant proportion of capital from insurance-linked securities (ILS) market sources, has revealed that over the last 5 years it has outperformed the Lloyd’s market by 6.1% on average.

The Lloyd’s insurance and reinsurance market has clear ambitions to broaden its offering to investors seeking insurance-linked returns, with CFO Burkhard Keese saying today that it views the creation of a casualty insurance-linked securities (ILS) market as possible.

With the focus in Florida’s property insurance market shifting towards an impending reinsurance renewal that is anticipated to be particularly challenging, rating agency Demotech has called for urgent legislative reforms and warned that a number of carriers are facing downgrades in the coming weeks.

At the reinsurance renewals earlier this year, insurance-linked securities (ILS) investment manager LGT ILS Partners did not want to walk away from clients seeking aggregate protection, instead taking steps to make aggregate deals work for the investment manager again.

While Florida’s Citizens Property Insurance Corporation could buy as much as $3.4 billion of new reinsurance and risk transfer in 2022, including catastrophe bonds, the main focus is on delivering value, as the not-for-profit property insurer targets cost savings.