Collateralized reinsurance news

Global reinsurance capital levels returned to their pre-pandemic high at $625 billion by the end of September 2020, with a slight rise in alternative reinsurance capital recorded during the third-quarter by broker Aon.

A shift towards underwriting more reinsurance business on a quota share basis could matter more for the forward-profits of many large reinsurers in 2021, than the lower-than hoped for rate increases in excess-of-loss treaty pricing, analysts at Barclays said in a report yesterday.

With the January 2021 renewals of reinsurance and retrocession programs supposed to be allocated, signed and all but completed by now, we’re told that this year there is still more work to do in working out shares of certain layers of retro towers.

The U.S. Federal Emergency Management Agency (FEMA) has explained the structure of its $1.153 billion National Flood Insurance Program’s (NFIP) traditional reinsurance renewal for 2021.

The Pioneer ILS Interval Fund, a dedicated insurance-linked securities (ILS) focused mutual investment fund strategy managed by Amundi Pioneer Investment Management, added almost 11% to its total net assets in the last quarter of record, while reporting an impressive 7.7% return for the full-year.

The U.S. Federal Emergency Management Agency (FEMA) has renewed the National Flood Insurance Program’s (NFIP) traditional reinsurance program at the January renewals, opting for a downsized $1.153 billion of coverage, but from an expanded panel of reinsurers.

The expected capacity shortage in the retrocessional reinsurance market did not materialise to the degree anticipated at the January 2021 renewals, resulting in a market that still firmed considerably, but did not experience the hardening many had been hoping for.

Fermat Capital Management LLC, the Westport, Connecticut headquartered investment fund manager that, has lifted its catastrophe bond and insurance-linked securities (ILS) assets under management to $7.5 billion before the end of 2020.

Issues related to the potential for insurance-linked securities (ILS) collateral to be trapped, because of uncertainty over the COVID-19 pandemic and its potential losses for the insurance and reinsurance industry, have largely been postponed until after the January renewals.

Global risk-adjusted property catastrophe reinsurance rates-on-line rose by an estimated 6% at the January 2021 reinsurance renewals, according to analysis by Howden Broking.