reinsurance

The property catastrophe reinsurance market saw a “more consistent trading rhythm” at the 1/1 2024 renewals, but still some clients have been left holding more volatility, according to Guy Carpenter CEO Dean Klisura.

Pillar Capital Management Limited, the Bermuda-based specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, had continued capital raising success in the second-half of last year, growing its ILS asset base to a new high of $4.4 billion.

While reporting a strong January 1st 2024 reinsurance renewals, at which it grew its premiums written by 38%, pure-play Bermuda reinsurer Conduit Re has also highlighted some signs of the moderating market environment in US property risks, particularly in excess-of-loss (XoL) business.

Signal Iduna Reinsurance Ltd. (SI Re), the Swiss based reinsurer located in the city of Zug, reported that while the reinsurance renewals at January 2024 saw a functioning market, retrocession continues to be a driver of conditions in Europe, even though there was less friction in the retro market this year.

Re/insurer MS Amlin has again returned to the capital markets to source catastrophe retrocession through a renewed quota share arrangement via reinsurance sidecar vehicle Phoenix 2 Re Pte. Ltd., lifting the coverage available to the company from the sidecar program to almost $87.5 million in the process.

Conduit Re, the Bermuda headquartered global reinsurance company, has continued to grow its underwriting portfolio at the January 2024 renewals, adding 38% in premiums written with a 3% risk-adjusted rate increase, but keeping its PML’s relatively flat thanks to the use of retrocession.

With the recent settlement of its latest cat bond issuance, US primary insurance firm Allstate has now moved to the top position in Artemis’ catastrophe bond sponsor leaderboard, with an impressive almost $2.86 billion in risk capital outstanding.

A record breaking year for the catastrophe bond and related insurance-linked securities (ILS) market and continued momentum in early 2024 is having a positive influence on the wider ILS market, according to Brad Adderley, Bermuda Managing Partner, Appleby.

Fitch Ratings has estimated that alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, will have reached $105 billion by the end of 2023, once the final figures are known.

US primary insurer Allstate has issued an update on qualifying catastrophe losses for its aggregate Sanders Re catastrophe bonds, with additional impacts through to the end of 2023 meaning one of the exposed tranches now sees its retention ~82% eroded, while others are eroded by between 53% and 56%, this publication has learned.