capital markets

Heritage Insurance Holdings, Inc., the Florida headquartered, nationally expansive U.S. property casualty insurer, has placed its first event reinsurance tower to an exhaustion point of $1.347 billion, which is around 12% lower than the prior year, while spend has increased by more than 9%.

The United Kingdom’s Prudential Regulatory Authority (PRA), part of the Bank of England, said it will keep its policy related to insurance-linked securities (ILS) and insurance special purpose vehicles (iSPV’s) under review as the Brexit transition proceeds, in case any changes are need.

Reinsurance pricing is expected to rise strongly at the July 1st 2020 renewals, with retrocession likely to be an area of particular increase, according to Lorenzo Volpi, Head of Business Development at Leadenhall Capital Partners LLP.

Capital top-ups, recapitalisation and fresh start-up capitalisation efforts are accelerating in insurance and reinsurance markets, as founders and investors look to make the most of the firming to hardening rate environment that is being seen widely across the sector.

Lemonade, Inc., one of the highest profile insurtech start-ups that had been funded by Softbank among others, has filed an initial public offering (IPO) registration statement in which it has also revealed that one of its reinsurers is the largest ILS fund manager in the world Nephila Capital.

By utilising the same insurance-linked securities (ILS) servicing specialist to provide re/insurance management and fund administration, benefits can be realised across capital raising, coordination, and cost, according to Horseshoe’s Brian Desmond.

Regular readers will know that we’re proponents of investing in insurance-linked securities (ILS) and reinsurance linked assets, recognising the beneficial features of the ILS asset class and what it can offer to a sophisticated institutional investor.

Third-party reinsurance capital, flowing in from the insurance-linked securities (ILS) market and other sources, is now the main driver of property catastrophe pricing, according to A.M. Best who expects investors to “hold the line” on returns.

During a period of broad financial market dislocation, the catastrophe bond space continues to exhibit resilience, and in the current operating landscape, the attractiveness of the asset class is enhanced, according to Luca Albertini of Leadenhall Capital Partners LLP.

The Texas Windstorm Insurance Association (TWIA) has successfully secured the $2.1 billion of reinsurance protection it was targeting for the 2020 storm season, with its new catastrophe bond and its doubling in size a key piece of the renewal for the residual market insurer.