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.
The Standards Board for Alternative Investments (SBAI) has published a new document that discusses the practice of side-pocketing within the insurance-linked securities (ILS) industry and explains the need for strong governance, transparency and robust disclosure when it comes to reserving for potential losses. The practice of side-pocketing is broadly used in read the full article →
Having reported EUR 3.5 billion of losses related to the COVID-19 pandemic for 2020 and now revealing an expectation of another EUR 600 million to be booked in 2021, Munich Re's CEO Joachim Wenning today urged industry and governments to make progress on a public-private model for pandemics and other read the full article →
In reporting its first-quarter results this morning, France headquartered global reinsurance company SCOR revealed that its two biggest hits of the period were winter storm Uri in Texas and the United States, as well as mortality claims from COVID-19, which its CEO said fell "within our risk appetite." SCOR has reported read the full article →
Our latest Artemis Live video interview features James Vickers, Chairman of Willis Re International, part of the global reinsurance broking unit of Willis Towers Watson, who joined us to discuss reinsurance market performance and capital trends. James Vickers and I discussed how Willis Re's reinsurance clients are finding market conditions in read the full article →
Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter, has announced the promotion of Lynette Pirilla Walter to Chief Legal Officer of the asset manager and the hiring of John Drnek of RenaissanceRe's as General Counsel for its Bermuda operation. Lynette Pirilla Walter has worked at Elementum read the full article →
The majority of insurance-linked securities (ILS) funds have reported a negative return for February 2021 after the impacts of the US winter storm and Texas freeze, according to the latest report from the Eurekahedge ILS Advisers Index. The Index was down -0.7% for the month of February 2021, as the average read the full article →
Losses and IBNR reserves related to the COVID-19 coronavirus pandemic reported by major insurance and reinsurance companies have risen significantly during the first-quarter of 2021, with the total pandemic loss reported now nearing $38 billion, having risen by 21% during reporting for the final-quarter results of 2020. Global reinsurance firms have read the full article →
The Lloyd's of London insurance and reinsurance market reported a £0.9bn loss for 2020 after significant impacts from the COVID-19 pandemic dented performance, despite significant reinsurance recoveries. In total, Lloyd's reported an aggregated market loss of £0.9bn for 2020, down from a £2.5bn profit for 2019. Driving performance down was, of course, read the full article →
The fact cedents allowed insurance-linked securities (ILS) capital to be rolled over into reinsurance renewals rather than trapping it for potential losses from the pandemic, for the ILS market "amounts to kicking the can down the road for COVID-19-related losses," according to AM Best. The rating agency warns that this could read the full article →
At the recent January 1st 2021 reinsurance renewals, the expectations for significant impairment to some insurance-linked securities (ILS) strategies because of trapped collateral due to exposure to the COVID-19 pandemic proved overblown. As the end of 2020 approached, some were forecasting that a significant amount of insurance-linked securities (ILS) capital could read the full article →