ILS funds news, insurance linked securities or ILS fund news

Demotech affirmed its financial ratings for 51 Florida based primary insurance companies, highlighting their “realistic” loss reserves and saying their reinsurance is of “sufficient quantity and quality” to ensure they receive payouts after suffering losses.

Bermudian insurance and reinsurance group Aspen Insurance Holdings Limited has continued to expand its use of collateralized reinsurance and ceding risks to third-party capital investors through its Aspen Capital Markets division.

The acquisition of Bermuda headquartered insurance and reinsurance group Aspen Insurance Holdings by funds under the management of private equity and alternative investment specialist Apollo Global Management, LLC, has now been completed.

Floridan primary insurers handle major catastrophe losses particularly well, especially the specialist underwriting firms who focus on coastal and catastrophe exposed property business. But a hurricane industry loss of greater than $100 billion would trouble the sector.

A bill has been introduced that if enacted would authorise the California Governor, Insurance Commissioner, and Treasurer to purchase insurance, reinsurance insurance-linked securities (ILS) or other alternative risk transfer (ART) products to help pay costs resulting from natural disasters.

Insurance claims from the Townsville flooding in Queensland, Australia are now estimated to have reached A$606 million, increasing the likelihood of reinsurance programs being triggered for insurers operating in the region.

Markel Corporation plans to adapt the Markel CATCo underwriting and investment strategy based on what it can learn from the catastrophe losses that affected it so severely during 2017 and 2018, the re/insurers Co-CEO said.

Australian primary insurer Suncorp is set to raise its budget for natural catastrophe losses and plans to buy A$200 million more reinsurance cover for the next financial year, while at the same time the insurers’ CEO acknowledged that climate change is driving more frequent losses for the firm.

Insurance-linked securities (ILS) and reinsurance linked investment funds fell to a negative December, thanks to continued loss development and loss creep from catastrophe events in prior months, which added to the already negative year and drove 2018’s ILS Index return to -3.92%.

Albert Benchimol, the President and Chief Executive Officer (CEO) of Bermudian insurer and reinsurer AXIS Capital Holdings Limited, has said that the firm should be proud of the fact it was able to increase its use of third-party reinsurance capital support at the January 1st, 2019 renewals.