Collateralized reinsurance news

Re/insurance firm Chubb has reported a drop in income for the first-quarter, after higher than expected catastrophe losses negatively affected the re/insurers earnings, with northeast U.S. winter storms and the California mudslides the major driver of losses in the period.

Swedish state sector pension fund AP3 was one investor whose ILS portfolio stood up to the impacts of the 2017 catastrophe events relatively well, as the pension investor reported a 2.9% return for its investments across the insurance and reinsurance linked investments space.

Global reinsurance giant Munich Re yesterday came out with a forecast for its first-quarter 2018, saying that it expects to achieve a consolidated result for the period of over €800 million, which would be the most profitable start to the year the company has experienced since 2014.

Stock exchange listed ILS and collateralized reinsurance investment strategy the Blue Capital Alternative Income Fund, suffered a -2.62% loss in March 2018, as hurricane Irma loss estimates were increased by counterparties, a factor that has negatively affected a number of ILS funds for the month.

Securis Investment Partners LLP, the London-based ILS investment manager, has named long-standing employee and previous Chief Operating Officer Vegard Nilsen as the firm’s new Chief Executive Officer, while co-founder Rob Procter continues as Chief Investment Officer.

Alternative reinsurance capital was once again largely responsible for the expansion of global reinsurance capacity in 2017, as insurance-linked capacity grew 17% to $88 billion by the end of the year, outpacing traditional reinsurance capital significantly, according to Willis Re.

The remaining in-force notes of Bermudian reinsurance firm RenaissanceRe’s $140 million of Series 2017-1 notes issued by Fibonacci Reinsurance Ltd. have been extended again, presumably as loss development continues.

Between April 13th and 15th a major springtime storm system impacted central and eastern areas of the United States, bringing severe convective weather, thunderstorms, hail, tornadoes, flooding rains and heavy snow, resulting in damage across 20 states and economic and insured losses running into the hundreds of millions of dollars.

The insurance-linked securities (ILS) market has continued its advance on global reinsurance markets, with no sign that there has been any impact to investor appetite following the major catastrophe losses of 2017, according to broker Willis Re.

Some reinsurance firms that entered the year with lower overall levels of capital, following the impacts of the major hurricanes and other losses last year, have become ” increasingly dependent on retrocession and alternative capital to maintain gross capacity,” according to rating agency Moody’s.