non-traditional

JLT Re, global reinsurance broking and consultancy services provider, has appointed Matthew Carter as a Partner in its London Market & International Division, to lead structured and non-traditional reinsurance activities in the UK and Europe.

Bermuda headquartered insurance and reinsurance group Hiscox deployed $110m of its own and third-party sourced capital through collateralised reinsurance and insurance-linked securities (ILS) funds at the beginning of the year, less than it expected.

The influence of non-traditional or alternative reinsurance capital from third-parties such as pension funds is spreading, according to insurance broker Marsh which cites inflows of new capital as a cause of the softening rate environment in Australia.

As Bermuda headquartered insurance and reinsurance group Hiscox continues to grow its use of third-party reinsurance capital and insurance-linked securities it is planning to launch a number of collateralised reinsurance funds in 2014.

Platinum Underwriters Holdings, the Bermuda based provider of global property, casualty and finite risk reinsurance coverage, is not currently planning to manage third-party capital preferring to focus on providing adequate returns to its equity investors, according to the firms CEO.

In an ideal world, should it matter to a corporate buyer of insurance if its insurers reinsurance program is backed by non-traditional reinsurance capital, perhaps third-party or capital market sourced, or traditional reinsurance capital from a rated reinsurers balance sheet?

In its recent second-quarter earnings conference call Platinum Underwriters Holdings, a Bermuda based provider of property, casualty and finite risk reinsurance coverages to a global client base, CEO discussed the differing characteristics of non-traditional reinsurance capital depending on its source.

Both the Chairman, Robert Childs, and CEO, Bronek Masojada, of Bermuda headquartered insurance and reinsurance group Hiscox have said that they see insurance-linked securities (ILS) capacity as a permanent and growing feature of the wider insurance and reinsurance market.

Platinum Underwriters Holdings, a Bermuda based provider of property, casualty and finite risk reinsurance coverages to a global client base, has said that it chose not to issue any catastrophe bonds since its 2008 Topiary Capital transaction matured. It has however tapped alternative reinsurance capacity this year.

Readers of Artemis will know that we often discuss the increasing flow of capital from institutional investors into the non-traditional reinsurance space and the effect capital markets sourced capacity has on the traditional reinsurance market and on reinsurers. One of the effects of this influx of capital is pressure on rates, as availability of capacity […]