Reinsurance News

The insurance and reinsurance market loss from the so-called Halloween hailstorm event in October 2020 that struck south-east Queensland, Australia has been lifted slightly to A$1.222 billion by PERILS AG.

Investors in Swiss Re’s collateralised reinsurance sidecars were likely relieved when they saw the reinsurers loss picks for hurricane Ida and other recent catastrophe events, according to CFO John Dacey.

According to CEO John Neal, Lloyd’s is on the verge of securing the backing of insurance-linked securities (ILS) capital for three of its syndicates, which we understand are the first transactions to utilise its London Bridge Risk PCC special purpose structure.

The global reinsurance sector outlook remains negative, according to S&P Global Ratings, as returns for the sector still fall short and the industry continues to battle against its commoditization, in particular from non-traditional capital.

The United Kingdom’s Prudential Regulatory Authority (PRA), part of the Bank of England, has published its second climate change adaptation report and featuring heavily in it is the subject of whether new or additional capital requirement charges may be needed as a result of climate change.

Global reinsurance firm Swiss Re reported strong performance across its property and casualty reinsurance business and Corporate Solutions this morning, with group net income of $1.3 billion reported, despite natural catastrophe and man-made losses driving an almost $2.5 billion net impact in the first nine-months of 2021.

French mutual insurer Covéa has now agreed and signed a Memorandum of Understanding to acquire Bermuda headquartered global reinsurer PartnerRe from Italian holding company EXOR, at the same $9 billion valuation as had been on the cards in the deal that fell-apart in 2020.

Several tailwinds buoyed Hiscox ILS throughout 2021 and with investor interest and enthusiasm remaining healthy, there’s “plenty of causes for optimism and opportunity,” according to Dr. Ben Fox, Principal, Portfolio Manager at Hiscox ILS.

Global reinsurance company SCOR is set to take a range of actions to lower its catastrophe volatility in the United States and will look to alternative retrocession products for 2022, as the company acknowledges capacity for certain retro solutions may be more limited, according to Jean-Paul Conoscente, CEO of SCOR Global P&C.

Cincinnati Financial Corporation benefited from a retrocessional reinsurance recovery for its reinsurer unit Cincinnati Re after hurricane Ida, capping the net incurred loss from the storm at $80 million for the company.