Collateralized reinsurance news

Bermudian insurance and reinsurance group Aspen Insurance Holdings Limited grew its book at the January 2018 renewals, with CEO Chris O’Kane saying it was the first quarter in the firms history when it underwrote more than $1 billion of premium, but a significant proportion was actually ceded to retrocession and third-party capital it appears.

The early indications on the upcoming mid-year June and July 2018 reinsurance renewals are that capital is being deployed “aggressively”, according to RenaissanceRe CEO Kevin O’Donnell, suggesting that any rate increases achieved may be dampened to a degree.

The difference between the best and worst performing funds among insurance-linked securities (ILS), catastrophe bonds and collateralized reinsurance strategies tracked by the Eurekahedge ILS Advisers Index widened to 4.05%, as loss adjustments drove the Index to a negative -0.24% return for March 2018.

Commentary on rate improvements experienced at specialty insurance and reinsurance group Lancashire Holdings Limited suggest that the enlarged portfolio underwritten by its third-party collateralized reinsurance capital unit Kinesis Capital Management will deliver more profits throughout the year ahead.

Bermudian reinsurance firm RenaissanceRe significantly increased its appetite to underwrite property catastrophe risks in the first-quarter, thanks to improved market conditions, but subsequently ceded more to third-party capital through its Upsilon RFO and DaVinciRe vehicles.

Catastrophe risk modelling and analytics specialist RMS has announced the launch of a new and updated high-definition risk model for Japanese earthquake and tsunami risks, which incorporates the latest seismic map data as well as learnings from the Tohoku and Kumamoto quakes.

With the major losses of 2017 largely behind the sector, the insurance-linked securities (ILS) market has tasked itself with becoming a trusted trading partner for ceding companies in their time of need, with the way the market recapitalised and traded forwards evidence that alternative capital continues to come of age, according to S&P.

An increase in estimated losses from last year’s hurricane Irma has dented the first-quarter results of Blue Capital Reinsurance Holdings Ltd., but the manager of the vehicle is confident in the portfolio underwritten at renewals this year and expects higher rates to deliver stronger returns.

The mid-year reinsurance renewal at June 1st is expected to yield pricing that is lower than last year for Florida headquartered primary insurance company Universal Insurance Holdings, which expects to be able to keep its retention static, while buying more coverage at comparable or lower rates.

Reinsurance brokerage Guy Carpenter has announced the promotion of its Bermuda Head of Retrocession broking John Fletcher to become the new Chairman of its island operations, as well as the hiring of James Morris as SVP, who joins the broker from Aon Bermuda.