Reinsurance News

Specialist global insurance and reinsurance firm MS Amlin is the latest to announce the launch of a collateralised reinsurance sidecar vehicle for 2018, announcing a $60 million plus vehicle named Viribus Re Ltd, which will provide collateralised reinsurance support to its Lloyd’s syndicate.

Global reinsurance firm Hannover Re has increased the size of its regular K-Cession capital markets retrocession placement to $600 million for 2018, as the reinsurer continued to leverage ILS funding as a source of protection and to augment its own capacity.

Property Claim Services (PCS), a Verisk Analytics business, has announced plans to launch a new loss aggregation solution for terrorism risks in the opening months of 2018, its latest industry loss data solution for global specialty insurance and reinsurance lines.

Reinsurance giant Munich Re has sponsored a second issuance for 2018 from its latest collateralized reinsurance sidecar, with a $216.34 million tranche of Series 2018-1 Class B participating notes issued by its Eden Re II Ltd. sidecar vehicle, taking the total size of the 2018 issuance to $300 million.

The insurance and reinsurance industry loss estimate for European windstorm (or extratropical cyclone) Xavier, which hit Germany in October, has been increased by almost 12% to EUR 325 million by catastrophe data loss aggregation and estimation firm PERILS AG.

European windstorm Burglind, or storm Eleanor as it was named in the United Kingdom, will probably cause an insurance and reinsurance industry-wide loss of around EUR 500 million, with EUR 200 million+ of losses expected for German insurers alone, according to actuarial firm Meyerthole Siems Kohlruss (MSK) .

Reinsurance giant Munich Re said that natural catastrophe events in 2017 have caused record insurance and reinsurance market losses, with the total industry bill estimated at $135 billion, but insurance only covered 41% of the damage as the economic loss from 2017 disasters is pegged at $330 billion.

The World Bank has collaborated with the Global Covenant of Mayors for Climate & Energy to provide technical assistance and $4.5 billion in funding to help cities around the world better prepare for and respond to the impacts of climate change, under the World Bank’s City Resilience Program (CRP).

Bermuda-headquartered P&C legacy and run-off reinsurance specialist, as well as founders of ILS Investment Management (ILSIM), Armour Group has raised a $500 million investment round led by private-equity specialists Aquiline Capital Partners to fund further growth.

The use of alternative capital and insurance-linked securities (ILS) in the reinsurance market has had its “proof of concept” moment, as following the losses the market continues to function as intended, investors seem comfortable with their exposure and many are planning to reload or upsize allocations to the space.