Covid-19 news

Insurance and reinsurance market losses from catastrophes and the Covid-19 pandemic already look set to reach somewhere from $100 billion to as much as $160 billion, according to broker Guy Carpenter.

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.

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.

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.

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.

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.

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.

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.

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.

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.