Reinsurance News

A significant outbreak of tornadoes and severe convective weather struck a number of southern U.S. states last night and into this morning, with widespread damage experienced and deaths expected to run to between 50 and 100.

After the publication of the latest Intergovernmental Panel on Climate Change (IPCC) report earlier this year in August, the Credit Suisse Insurance Linked Strategies team has analysed its findings on climate trends related to severe weather catastrophes and tried to quantify their impacts on the global insurance, reinsurance and insurance-linked securities (ILS).

Optimism over reinsurance renewal rate increases is said to be rising, as the market deals with a significantly delayed renewal timeline, for which a lack of aggregate retrocession capacity and trapped insurance-linked securities (ILS) capital are two of the drivers.

The insurance and reinsurance market loss from severe storms that struck southern Australia in late October 2021 is already estimated to be over A$ 1 billion by data aggregator and reporting agency PERILS.

Progress in the buyout of investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds is unlikely to be made until next year now, as the investment manager said a court decision is unlikely to come until January 22nd 2022.

The California Earthquake Authority’s (CEA) reinsurance and catastrophe bond based risk transfer program shrank slightly by December 1st 2021, but with forecasts suggesting it could need to buy as much as $6 billion more in limit over just the next 5 years, further growth seems likely.

A new report details an opportunity to create insurance solutions to underpin the nature-based carbon market and suggests that securitizing them would be a way to unlock new capital, while feeding investors appetites for insurance-linked investments and an environmental, social and governance (ESG) appropriate asset.

The Canada Pension Plan Investment Board (CPPIB), one of the larger pension investors with a strong appetite for insurance and reinsurance market-linked returns, is reportedly looking to sell two of its larger equity stakes in the industry, by offloading specialty player Ascot Group and life and annuity reinsurance firm Wilton Re.

Twelve Capital Management, the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, is expanding its strategies to include insurtech investments with the help of a new collaboration with specialist insurtech investor Eos Venture Partners.

Voussoir Re Ltd., the Bermuda-based collateralized reinsurance sidecar style special purpose insurance (SPI) vehicle of Arch Capital, has issued new Series 2021-9 shares, showing the sponsor continuing to use this structure to partner with capital market investors.