convergence

The continuing influx of so-called convergence capital into the reinsurance sector, non-traditional capital from third-party, alternative, capital market sources, has had a very real impact on the reinsurance markets capital structure resulting in significant pricing pressure at the recent June 1 renewals, according to insight from reinsurance broker Guy Carpenter.

Florida’s Citizens Property Insurance completed another takeout deal last week as part of its ongoing efforts to depopulate itself of certain policies to reduce its exposure to hurricanes and improve its financial state. The takeout deal approved on Wednesday will lower the insurer’s potential exposure by $16 billion and cut losses by $439 million in the […]

Sirius International Group, Ltd., the Bermuda based reinsurance arm of the White Mountains Insurance Group, Ltd., is the latest reinsurer to announce the launch of an initiative seeking to capitalise on the convergence of reinsurance and capital markets. Sirius Group has formed a dedicated ILS team which will lead a strategic initiative in the insurance […]

A number of organisations based in, or with interests in, Bermuda have joined forces to promote the continued growth of Bermuda as a centre of excellence for the convergence of the reinsurance and capital markets under the banner of insurance-linked securities (ILS). The new member group is called ILS Bermuda and it aims to bring […]

At the recent Bank of America Merrill Lynch 2013 Insurance Conference held earlier this month William Babcock, the Chief Financial Office and an Executive Vice President at Bermudian reinsurer PartnerRe, made some interesting comments about the increasing flow of third-party capital into the reinsurance space. His comments reflect the trend being seen for reinsurers to […]

A new report on the U.S. and global insurance and reinsurance market published yesterday by Conning & Company suggests that as the convergence of reinsurance and capital markets continues to play out the trend will bring its own challenges for the industry to deal with. Competition, between traditional and alternative reinsurance players, will likely grow […]

One of the side-effects of Florida’s Citizens Property Insurance’s, the property insurer of last resort, plan to reduce the risk it holds through depopulation of some of its policies and increasing its own use of private market risk transfer will be an increase in the amount of Florida hurricane risk in the private reinsurance market. […]

German reinsurer Hannover Re recently held a conference call to discuss its progress during 2012 and at the important market juncture of the January reinsurance renewals. The reinsurer said that despite the reinsurance market environment being considerably more competitive than in the previous year, citing increased capacity from new reinsurers and the insurance-linked securities space, […]

A new report on the Bermuda reinsurance market published by Fitch Ratings says that the Bermuda re/insurance market continues to lead the way as the convergence of the reinsurance market and capital markets persists. Many of the islands re/insurance groups are involved in the provision of alternative risk transfer solutions which leverage capital markets capacity, […]

The reinsurance market entered the key January reinsurance renewals period with ample dedicated capital and stable pricing, according to reinsurance broker Guy Carpenter’s January 2013 Reinsurance Renewals report. Price volatility is being seen, but only on loss-affected lines and regions of business. One factor contributing to the healthy capitalisation of the global reinsurance market is […]