Collateralized reinsurance news

Cyber risk modelling company Kovrr has added new insurance, reinsurance and insurance-linked securities (ILS) expertise to its advisory board with the addition of John Butler, Head of Cohen & Company’s U.S. Insurance Asset Management Platform and Global ILS Program.

The property insurance market loss from the severe hailstorms that struck the southeastern region of Australia in January has been preliminarily estimated at A$670 million by PERILS AG.

White Mountains Insurance Group made good on its promise to allocate up to $50 million of capital into ILS funds under the management of Elementum Advisors, LLC, the insurance and reinsurance linked asset manager in which it acquired a 30% stake in 2019.

Arch Capital Group, the Bermuda headquartered insurance and reinsurance specialist, has sponsored a new $76.5 million sidecar issuance through the special purpose insurer Voussoir Re Ltd., we understand.

Insured losses from the severe hailstorms that struck the southeastern region of Australia in January have risen by another 26%, with the latest estimate of insurance and reinsurance industry losses now sitting at A$805 million (around US $503m).

Insurance-linked securities (ILS) is seen as one of the cylinders of the insurance and reinsurance engine for Markel Corporation and the firm’s CO-CEO’s Thomas Gayner and Richard Whitt see ILS driving “increasing advantages and profitability” for the company with its leading position set to help it scale in the space.

Lloyd’s of London said that it will continue progressing its plans to make the insurance and reinsurance market more welcoming and accessible to insurance-linked securities (ILS) capital providers, but only in parallel with its 2020 priority deliverables under the first phase of the Future at Lloyd’s.

Use of third-party capital has continued to increase at Bermuda headquartered international specialty insurance and reinsurance firm Argo Group, with its net premiums dipping as a result of sharing more of its underwritten risk premiums (and likely losses) with third-party investors.

Reinsurance and retrocession cedents have been trapping increasing amounts of ILS collateral for longer periods of time than in the past, broker Aon said, as uncertainty over loss creep from catastrophe events has driven them to be more cautious.

Generali, one of the largest global insurance and asset management companies, has recognised the potential for insurance and reinsurance linked investments to have green or ESG credentials and has developed a framework for Green insurance-linked securities (ILS).