Reinsurance News

The results of many of the insurance and reinsurance industries leading players, over the first-half of 2016, show that one response to a challenging, competitive and softening market, is to try to spend your way out of it.

Exchange Re, a platform for collateralised reinsurance or cell-based ILS transactions and the first to be launched in Malta, has now received official approval to begin business by the Malta Financial Services Authority (MFSA).

Capital from third-party reinsurance investors is becoming increasingly important to re/insurer AXIS Capital with the company set to increasingly utilise alternative and capital markets sources, as the multiple balance-sheet approach enables it to optimise its risk appetite and underwriting portfolio.

Terry Ledbetter, the Chairman and Chief Executive Officer (CEO) of State National Companies has described the firm as the “natural conduit between risk and capital,” highlighting its commitment and ability in providing fronting services for companies like Nephila Capital.

Munich Re, currently the second largest reinsurance company in the world, said this morning that the attrition to reinsurance underwriting margins continues but at a slower pace, saying that global reinsurance pricing and terms are stabilising.

U.S. commercial P&C rates declined by an average of 1% in July 2016, in line with the 1% reduction witnessed in June as insurers continue to push for an end to any further rate reductions, according to market commentary from MarketScout and Keefe, Bruyette & Woods (KBW).

Catastrophe risk modelling firm RMS has highlighted the growing catastrophe exposures faced by ports around the world. Analysis from the firm reveals that a combination of cargo type and the type of natural disaster risk are significant drivers of potential losses, and not just the size of container hubs.

RFIB Group Limited, the international and Lloyd’s specialist insurance and reinsurance broker, has made an important hire in the U.S., adding insurance-linked securities (ILS) and reinsurance capital markets specialist Glenn Jackson as Managing Director of RFIB Americas.

For corporations large and small the purchase of their traditional insurance protection typically includes a large deductible, which can be very expensive to reduce. Underlining an opportunity for the capital markets and parametric triggers to provide companies with a more efficient means of reducing risk.

Insurance and reinsurance group Aspen is set to make greater use of reinsurance capacity as it sees the time as right to take advantage of pricing and appetite, in order to help it to reduce its probable maximum loss, something it has also been using its Aspen Capital Markets unit to do.