Collateralized reinsurance news

March saw a resurgence in the number of litigated property insurance claims at Florida’s largest P&C insurers, while litigated claims related to the assignment of benefits (AOB) increased at their fastest rate since 2019, according to CaseGlide.

The ultimate insurance and reinsurance industry loss from the ongoing conflict in Ukraine could rise above US $20 billion, according to analysis from PCS, a Verisk company, which has provided some data the ILS market may find helpful in understanding what, if any, exposure its structures may hold.

Swiss Re’s landmark hybrid bank financing and insurance-linked securities (ILS) backed whole account stop-loss transaction was a “win-win” for the reinsurer and the investors backing the deal, with the ILS component of the arrangement oversubscribed due to its popularity, Philipp Rüede explained to Artemis.

Swiss Re has completed a landmark hybrid bank financing and insurance-linked securities (ILS) transaction, utilising its Matterhorn Re Ltd. special purpose insurer to issue catastrophe bond notes alongside a loan arrangement with J.P. Morgan, to secure $1.15 billion of all-lines of business stop-loss financing and protection from the capital markets.

The value of insurance-linked securities (ILS) held in the dedicated mutual ILS investment fund operated by Amundi US Investment Management, the Pioneer ILS Interval Fund, has declined by some 15% in the quarter to end of January 2022.

Italian primary insurance company UnipolSai Assicurazioni S.p.A. has returned to the catastrophe bond market for what will be its fourth issuance, with a €100 million Azzurro Re II DAC (Series 2022-1) issuance that seeks to extend its sources of earthquake reinsurance protection from the capital markets.

The United States Department of Treasury’s Federal Insurance Office (FIO) is seeking industry input and feedback on how available reinsurance and retrocession support from the capital markets may be for terrorism related risks.

Although the frequency and severity of claims in recent times has hindered returns in the insurance-linked securities (ILS) market, the fundamental strength of the asset class remains, according to Stephan Ruoff and Mark Gibson of Schroders Capital.

Insurance-linked securities (ILS) fund strategies delivered muted performance in February 2022, with catastrophe bond funds affected by market dynamic related pricing pressure, while some private ILS fund strategies experienced impacts to aggregate positions.

ILS Bermuda, an organisation that promotes Bermudian economic development through growth of the reinsurance convergence and insurance-linked securities (ILS) sector on the island, has named two industry leaders to key roles, as its leadership adjusts.