reinsurance

The industry is facing a roughly $100 billion gap between supply of reinsurance capital and the demand for it, but the demand side continues to expand with climate factors part of that equation, CEO of Everest Juan Andrade said during an interview with Bloomberg recently.

Artemis can report that the reinsurance carriers participating in the lowest layer of FEMA’s 2022 National Flood Insurance Program (NFIP) reinsurance tower now appear to be facing losses from hurricane Ian, as the NFIP’s claims from the storm have risen to $4.3 billion.

In the latest court filings under the Vesttoo chapter 11 bankruptcy case, it’s become clear that a difference of opinion has emerged between creditors to the estate, with the Official Committee of Unsecured Creditors taking a different tack to the joint provisional liquidators to Aon’s White Rock Insurance (SAC) Ltd.

US primary insurer Allstate is considering buying more reinsurance, likely in aggregate stop-loss form, in order to cap the volatility its results are suffering from severe weather and cat loss activity, as well as possibly other loss effects.

Six tranches of privately placed catastrophe bonds have been issued with a total value of $87.6 million, by Isosceles Insurance Ltd., the Bermuda-domiciled private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter.

Reinsurance broker Gallagher Re has attracted a key hire of an executive with significant insurance-linked securities (ILS) experience, as Brad Livingston has left parametric firm Arbol to join the broker as its new Head of Collateralized Re.

Analysts from investment bank Berenberg have said that investors may, at this time, be more open to allocating capital to reinsurance via insurance-linked securities (ILS) vehicles than through any new “Class of” startup companies.

The market for alternative reinsurance capital and insurance-linked securities (ILS) is set to bifurcate, as investor preference sees more capital rotating into catastrophe bonds in search of more stable performance, Swiss Re believes.

There is more optimising on the potential for retrocession capacity to be more available towards the end of the year for the January 2024 renewals, with conditions having improved and some fund-raising possible, Lara Mowery of Guy Carpenter said last week.

Right now and for the medium-term, in the world of insurance-linked securities (ILS), “liquidity is king”, according to Erik Manning, Director at BMS Re in Bermuda, who believes ILS managers need to focus on finding more liquid ILS investment structures to offer to their clients.