Collateralized reinsurance news

Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings, grew roughly 20% during 2019, to enter the 2020 renewal season with somewhere north of an estimated $600 million of limit available to deploy.

Florida headquartered, expansive primary insurer United Insurance Holdings (UPC Insurance) has already renewed more than 85% of its core catastrophe reinsurance program that renews at June 1st, as it hopes to insulate itself against price increases by getting to market early.

Having brought together its insurance-linked securities (ILS) and retrocessional reinsurance activities last year, global firm Swiss Re expects to remain a major player in the alternative capital space, its CFO said yesterday.

TransRe, the reinsurance arm of Alleghany Corporation, is able to “punch above its weight” in the global reinsurancem market, thanks to its access to efficient third-party capital, Alleghany CEO Weston Hicks said.

As insurance and reinsurance linked investing remains popular among investors and an attractive source of protection to cedents, new insurance-linked securities (ILS) funds are still being formed and we should expect them to be “impressive in size”, Brad Adderley a Partner at law firm Appleby Bermuda said recently.

Credit Suisse Insurance Linked Strategies Ltd., the insurance and reinsurance investments focused unit of bank and asset management giant Credit Suisse, has promoted employee Benjamin Jacquet to the role of Head of Non-Life Underwriting.

Despite the fact AXIS Capital significantly increased its fee income earned from third-party capital sources in 2019, the firms assets from ILS style investors shrank over the course of the year and the company began 2020 with less of this type of investor capital than a year earlier.

The Texas Windstorm Insurance Association (TWIA) has raised its target for reinsurance and catastrophe bond coverage for this year to $2.1 billion, while at the same time the expectations for average rate-on-line have fallen slightly since December.

Recent European windstorms and resulting flooding pose an increasing threat to certain layers of UK and European reinsurance programs, as loss estimates begin to suggest multi-billion Euro industry impacts in the last fortnight.

2020 is the year when the insurance-linked securities (ILS) market should flex its muscles to ensure the robustness of its products for both cedents and investors, speakers at our recent New York ILS conference said.