reinsurance

Hurricane Beryl caused significant impacts to some of the Caribbean Windward Islands yesterday and after passing that island chain resumed its intensification, recently being upgraded to a Category 5 storm with 165 mph sustained winds, the strongest hurricane this early in the year on-record for the Atlantic basin. Latest updates.

Catastrophe bond and related insurance-linked securities (ILS) market activity levels accelerated in the second-quarter of 2024, with a record $8.4 billion of new risk capital issued that propelled the market to a record size of $48 billion, Artemis’ just-released new quarterly market report details.

The reinsurance sidecar market has continued to expand through the second-quarter of 2024 and broker Aon’s Reinsurance Solutions team estimates that over $1 billion of capital has entered this proportional collateralized reinsurance market in the last year.

The overall yield of the catastrophe bond market in US dollars rose slightly through June and ended the month at just under 13.7%, reaching levels last seen in August 2023.

Reinsurance broker Guy Carpenter has said that the fact expected mid-year insurance-linked securities (ILS) fund raises were “somewhat lower than expected” had a bearing on the just completed renewals.

If the performance of the reinsurance market in full-year 2024 is similar to the excellent returns generated in 2023, Gallagher Re CEO Tom Wakefield has warned that “there will inevitably be a softening pressure going into 2025.”

PERILS AG has again raised its insurance industry loss estimate for the severe storms that affected eastern Australia through the Christmas period, lifting the total by another percent to AU $1.563 billion (still around US $1.05bn).

All eyes will be on the Atlantic tropics over the coming days, as an area of investigation known as Invest 95L is currently forecast, by a number of models, to have the potential to become a hurricane in the Caribbean and perhaps head towards the Gulf of Mexico. See the latest updates here.

Here are the ten most popular news articles, week ending June 30th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Broking giant Aon has reported that the June and July mid-year 2024 reinsurance renewals saw heightened competition from markets, helping to drive a much more positive outcome for reinsurance buyers than a year ago.