Reinsurance News

Conduit Re, a Class of 2021 reinsurance start-up that raised close to $1.1 billion of capital in an initial public offering (IPO) and listing before it began underwriting, highlighted the importance of its retrocession in buffering its results against the impacts of hurricane Ida.

In the last quarter of record, revenues earned from its flagship insurance-linked securities (ILS) operation Nephila Capital rose for parent Markel Corporation, but assets under management at Nephila Capital declined heavily in Q3, dropping by $500 million to $9.3 billion by the end of September.

A new report calls for an expanding use of risk sharing to help the world tackle the climate emergency and highlights the role of the capital markets, as well as instruments such as ILS and catastrophe bonds, in helping to protect lives and livelihoods against loss and damage during a resilient transition to net zero.

The Start Network, an international network of non-governmental humanitarian organisations, is partnering with the Insurance Development Forum (IDF) on the creation of a new financial service for the humanitarian sector, with parametric triggers and risk pooling at its heart.

Insurance and reinsurance broking group Aon has said today that the “fingerprints of climate change” are evident in some of the largest catastrophe loss events this year, namely major hurricane Ida, flooding in Europe and Asia, as well as wildfires in the United States.

Private insurance-linked securities (ILS) funds, that invest in collateralised reinsurance and retrocession, were the main destination for loss creep from hurricane Ida in September, as a number had to add to their reserves for the loss event.

Australian primary insurance giant IAG has reported that recent severe storms and hail in Australia in October are set to drive a reinsurance recovery for the company, as its net loss hit the retention on its catastrophe reinsurance program.

Hiscox Re & ILS, the international reinsurance and insurance-linked securities (ILS) arm of the Hiscox Group, is expecting an improved rate environment at the key January 2022 renewal seasons, which could lead to further net growth as it takes advantage of the best rates in years in some areas of its business.

On Monday November 1st 2021 at the United Nations (UN) Framework Convention on Climate Change Conference of the Parties (COP26) in Glasgow, United Kingdom, it became clear that this is a moment in time where the insurance, reinsurance and insurance-linked securities (ILS) industries have an opportunity to display climate leadership.

Investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds now stand to receive as much as 18.5% more in capital return, on the back of the updated and improved buyout terms.