Covid-19 news

Covid-19 news, analysis and information of relevance to the insurance-linked securities (ILS), catastrophe bond and reinsurance capital markets.

The Covid-19 coronavirus outbreak of 2019/20 caused significant disruption and threatened losses across insurance and reinsurance markets, with some ramifications for ILS and cat bond investors and sponsors as well.


Some mortgage ILS’ triggered as delinquencies soar due to Covid-19

Three sponsors of mortgage insurance-linked securities (ILS) transactions have warned investors in the mortgage insurance linked notes that elevated loan delinquency levels in May 2020 have triggered their deals. The three sponsors in question are Radian Guaranty, National Mortgage Insurance Corporation and MGIC Investment Corporation, each of which have visited the read the full article →

Niche hedge fund strategies (like ILS) the only ones to record Q1 inflows

Hedge funds suffered in the first-quarter of 2020, as the Covid-19 pandemic drove billions of losses and also pushed investors to seek redemptions, resulting in a significant dip in hedge fund assets under management during the period. It's no surprise, given the significant volatility experienced through March in particular, as the read the full article →

Capacity will meet cedent needs at Jan 2021 reinsurance renewal: GC

While capacity and the availability of it has been cited as a key driver of reinsurance rates in this current firming market environment, broker Guy Carpenter said it expects capacity will meet cedent needs at future renewals, as it saw it to in June this year. Reinsurance broker Guy Carpenter says read the full article →

Belize takes parametric rainfall payout from CCRIF after Amanda/Cristobal

The central American nation of Belize has benefited from a payout of its parametric excess rainfall policy, provided by the CCRIF SPC, after rains from tropical storms Amanda and Cristobal triggered its coverage. The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) has already made one payout to read the full article →

Aetna’s claim ratio well-below Vitality Re ILS trigger in Q1 despite Covid-19

Despite the impacts of the Covid-19 coronavirus pandemic, the medical benefit claims ratio reported by insurer Aetna for the first-quarter of 2020 has remained well-below the levels where its Vitality Re series of health insurance-linked securities (ILS) transactions could be triggered, we can report. As we'd explained previously, the Vitality Re read the full article →

Munich Re says Covid-19 means no profit target for 2020

While global reinsurance giant Munich Re said that it has the financial strength to withstand the economic hit from the Covid-19 pandemic, the reinsurer will not put in place any profit guidance for the full-year, saying the uncertainty over losses remains high. Previously, Munich Re had withdrawn its target for €2.8 read the full article →

Artemis Live: Interview with Urs Ramseier & Florian Steiger, Twelve Capital

We've just published our latest video interview which features executives from independent insurance-linked securities (ILS), catastrophe bond and reinsurance investment manager Twelve Capital. All of our Artemis Live video interviews can be accessed directly from our YouTube Channel and we have more interesting discussions with leaders of the ILS and reinsurance read the full article →

Global Covid-19 claims under $70bn, Lloyd’s estimate too high: Analysts

Analysts from investment bank Berenberg have said that they believe global claims for the insurance and reinsurance industry due to the Covid-19 pandemic will be manageable, estimating a range from $50 billion to $70 billion for the total bill. The analysts don't specify whether this includes both life and non-life insurance read the full article →

Cat bonds again show investor benefits during a crisis: Anger, GC Securities

Throughout the current crisis, the catastrophe bond marketplace has once again shown its resilience and ability to perform differently to the broader capital markets, according to Cory Anger of GC Securities. Artemis recently spoke with Anger, Managing Director of GC Securities, the specialist insurance-linked securities (ILS) division of reinsurance broker Guy read the full article →

Covid-19 “compounded” firming of reinsurance at Florida renewal: GC

The Covid-19 pandemic has compounded an already firming reinsurance market environment at the renewals, causing challenges in completing placements and driving double-digit Florida rate increases, according to Guy Carpenter. The reinsurance broker explained that the June 1st reinsurance renewals for Florida property and catastrophe risks were particularly affected by the the read the full article →