Industry loss warranty news

Markel Corporation is still unsure when it will be able to begin raising new funds for future investment strategies operated by its Markel CATCo asset management unit, according to the firms Co-CEO Richard Whitt III.

Bermudian insurance and reinsurance group Arch Capital believes the industry loss from typhoon Jebi could now be as high as $13 billion and its CEO Marc Grandisson said that the market missed the business interruption and contingent BI exposures.

Markel Corporation has requested the dismissal of the lawsuit filed against its Markel CATCo Investment Management subsidiary, claiming that the suit by Tony Belisle fails to state a reasonable claim against the firm.

Results announced this morning by global reinsurance firm SCOR confirm the loss creep trend we’re expecting to see from Japanese typhoons Jebi and Trami, as the company revealed a EUR 53 million hit to profits.

Hurricane Michael’s wind speeds at landfall in Florida have been upgraded by the U.S. NOAA’s National Hurricane Center scientists in their final tropical cyclone report, now estimating them as having reached Category 5 at 160 mph.

Markel CATCo Investment Management is committed to the delivery of its 2019 portfolio to shareholders in its listed retrocessional reinsurance fund strategy, signalling an intention to trade forwards once loss affected portfolios are dealt with.

Rob Procter, the co-founder of Securis Investment Partners, the independent London-headquartered insurance and reinsurance linked investment manager, has been assigned to the advisory board of Akinova, having also made an investment in the start-up.

After an internal review conducted by outside legal counsel was completed, Markel Corporation says that the review found no evidence of “bad faith in exercising business judgment” by Markel CATCo personnel when it came to setting loss reserves in late 2017 and early 2018.

The City National Rochdale Select Strategies Fund (CNRLX), an industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) investment fund, managed a 6.6% annual return in the year to Jan 31st 2019, while its assets under management increased in the last quarter as well.

Typhoon Jebi has already become the loss creep story of 2019 so far, but it’s set to become an even higher profile case as a rising industry loss estimate for the storm means it’s now expected that a number of industry loss warranty (ILW) contracts will payout.