Reinsurance News

John Elkann, Chairman and CEO of diversified Italian investment holding company EXOR S.p.A has been appointed Chairman of EXOR’s newly acquired reinsurance operation PartnerRe’s Board of Directors. Also Emmanuel Clarke, President of PartnerRe Ltd., has been named President and CEO.

Standard & Poor’s (S&P) has attributed the continued strong performance of global reinsurers in 2015 to the benign catastrophe loss environment and reserve releases, citing that these factors are masking true business conditions, which are to remain challenging and competitive in 2016.

The tragic events in Brussels, Belgium this week, when more than 30 people were killed by terrorist bombings at the city’s airport and metro, are unlikely to result in significant insurance or reinsurance impact, but demonstrate the lack of coverage for the terrorism-related economic exposure.

The insurance and reinsurance industry loss from the flooding that struck the UK in December 2015 and early January 2016 is now estimated at £1.24 billion ($1.75bn) as the estimate for storms Eva – Frank rises 10%, according to PERILS AG.

As more primary insurers utilise a formal risk appetite statement their reinsurance buying habits have evolved, says Willis Re. And with reinsurance becoming a greater priority for many firms there could be an opportunity for insurance-linked securities (ILS) capacity to expand its global footprint.

Another year passes, another annual report from the Lloyd’s of London insurance and reinsurance market is released and we witness another increase in the positive tone in which the market describes the opportunity to embrace ILS and alternative capital.

Hail storms caused by severe thunderstorms in the Dallas and Fort Worth area of Texas on Thursday 17th March 2016 are now expected to result in over $600 million of insurance claims, according to the states Insurance Council.

The Lloyd’s of London insurance and reinsurance market suffered a drop in profitability in 2015 as the impacts of lower pricing on re/insurance underwritten, higher competition and lower investment returns all combined to reduce profits.

The California Earthquake Authority (CEA) is set to increase the size of its reinsurance program with an April placement set to take its total risk transfer to $4.5 billion, but ILS investors have not seen a new catastrophe bond as currently they are hard to justify due to the cost.

According to reinsurance broker Guy Carpenter the twin effects of El Niño and the North Atlantic Oscillation were key drivers of climate in 2015, but even with these effects the insurance and reinsurance industry only suffered $30.5 billion of industry losses.