Alternative reinsurance capital

When Bermuda based reinsurance and third-party capital management specialist RenaissanceRe closes on its acquisition of the Validus reinsurance business from AIG, its CEO believes it will cede risk from the acquired company to investors in its ILS and joint-venture vehicles at a similar rate to how it operates today.

Insurance and reinsurance broking giant Aon has expanded its attempt to freeze the assets of beleaguered insurtech Vesttoo, with a fresh appeal to a court in Tel Aviv via its White Rock Insurance (SAC) Ltd. company, it has now been reported.

The fall-out from the Vesttoo matter shines a spotlight on enterprise risk management (ERM) for the fronting sector, while there is a potential for some in the insurance value-chain to suffer short-term reputational damage after this issue, rating agency KBRA has said.

Whatever the form of capital, be it from insurance-linked securities (ILS) investors or elsewhere, one good year of performance is not going to be enough to entice a significant volume of capital into the reinsurance industry, according to executives at Bermuda-based Lancashire Holdings.

In the ongoing court case that sees insurance and reinsurance broking giant Aon, via its White Rock SAC vehicle, pursuing beleaguered insurtech Vesttoo for reparations after letters of credit (LOCs) backing collateralized reinsurance deals were alleged to be fraudulent or forged, the broker is seeking a $136.7 million return of collateral.

Here are the ten most popular news articles, week ending August 13th 2023, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

A new statement from the incoming interim CEO of Vesttoo, Ami Barlev, claims that the company has now learned that “a number of factors, external to the company, led directly to the current crisis, including the involvement of certain foreign banks and financial institutions.”

Insurance and reinsurance broking giant Aon is pursuing beleaguered insurtech Vesttoo through a New York Court via its White Rock Insurance (SAC) Ltd. segregated account and transformer structure, and has so far secured a temporary restraining order to freeze Vesttoo’s funds.

In analysing US insurer filings for their use of letters of credit (LOCs) specifically from one of the banks at the centre of the Vesttoo linked collateral fraud story, ALIRT Insurance Research found more than $1.3 billion of them, but said it is hard to tell how much of that is associated with Vesttoo, or […]

ALIRT Insurance Research has concluded that, ultimately, all of the parties exposed to the alleged fraudulent LOC issue engulfing insurtech Vesttoo bear some responsibility, stating that it’s “difficult to fathom” that the fraud was “able to evade multiple levels of due diligence”.