Collateralized reinsurance news

Boutique alternative investment specialist Hatteras Funds is set to launch a new insurance-linked securities (ILS) and reinsurance linked investment mutual fund arranged as an interval structure, becoming the latest company to offer reinsurance-linked investments to advisors and clients.

The Texas Windstorm Insurance Association (TWIA) is set to procure a new $1.4 billion layer of reinsurance and catastrophe bonds in 2018, taking its overall private market program to $2.6 billion, a 24% increase from the size of its program a year ago, helping to cover a funding gap created by increasing hurricane Harvey losses.

It’s our pleasure to announce a number of new speakers from Aon Securities, Mt. Logan Re, NatCatDAX and DBS Bank, for the upcoming third instalment of our annual insurance-linked securities (ILS) conference in Asia, ILS Asia 2018.

Steady increases in interest rates will benefit alternative investment strategies that have investments in short-term, highly rated fixed income portfolios, as it will raise their expected returns and could result in them growing their share of the overall hedge fund industry, according to the founder of Agecroft Partners.

Winter storms in the first-quarter of 2018 impacted Florida headquartered property casualty insurer Heritage Insurance Holdings, Inc. but the firms reinsurance partners have shouldered most of the loss, as Heritage ceded roughly $47 million of winter storm losses to them.

Mt. Logan Re Ltd., the collateralized reinsurance, sidecar-like investment vehicle of Everest Re which constitutes the reinsurers main third-party capital management strategy, underwrote 50% more premiums in the first-quarter of 2018 compared to the prior year.

United Insurance Holdings (UPC Insurance) has renewed its reinsurance for 2018/19 in an enlarged placement that provides $3.1 billion of coverage, with the private market participation all structured as a cascading or drop-down feature, while the capital markets continued to play a key role.

Florida headquartered and expansive property casualty insurer Heritage Insurance Holdings, Inc. has successfully secured its 2018/19 reinsurance program at almost flat rates, citing a risk adjusted cost increase of just 1% at its latest renewal.

The Hiscox Re & ILS business, which is made up of the reinsurance underwriting and insurance-linked securities (ILS) management at global specialist re/insurer Hiscox Group, underwrote significantly more premiums during the first-quarter of the year, but noted that it had to fight hard for it.

Activities related to capital market transactions such as catastrophe bonds in the first-quarter of 2018 added to strong reinsurance broking revenue growth for Aon plc, as the investment banking side of the broking business continued to drive attractive fees.