Collateralized reinsurance rises to $50bn on evident pricing discipline: AM Best

The collateralized reinsurance market is estimated to have grown to around US $50 billion by the end of the first-quarter of 2021, with capacity having increased slightly following a more challenging period, according to AM Best. The rating agency believes that collateralized reinsurance capacity returned to growth, helped in large part read the full article →

Mutual ILS funds take Ida hit. Stone Ridge interval fund falls ~5%

The main mutual insurance-linked securities (ILS) and reinsurance linked mutual investment funds have experienced some declines in the wake of the recent landfall of major hurricane Ida. Hurricane Ida made landfall on August 29th in Louisiana with major 150 mph winds. The storm devastated regions of the coast, impacted New Orleans read the full article →

SCOR “kicked itself” for not renewing mortality bonds: CEO Rousseau

French reinsurance company SCOR "kicked itself" for not having renewed its mortality catastrophe bonds in the past, the firms new CEO Laurent Rousseau explained today. Laurent Rousseau was speaking during a virtual event organised by the organisers of the Rendez-Vous de Septembre (RVS) today, in which he discussed the pandemic and read the full article →

Talk of renewal rate reductions “out of the window” – Peel Hunt analysts

Having visited the Lloyd's insurance and reinsurance market last week and spoken with some of its major players, analysts at peel Hunt concluded that with the renewals approaching talk of rate reductions are now "out of the window." Instead, the market's original expectations of flat to low single-digit increases, are now read the full article →

No change to underwriting as Swiss Re’s ILS capital grows: Rüede

As third-party or alternative capital managed continues to grow for global reinsurance firm Swiss Re, the company is keen to stress that this doesn't mean any changes to its underwriting approach and standards, Philipp Rüede told us. Swiss Re has big ambitions in ILS capital management, seeing it as a core read the full article →

Reinsurers evolve to coexist with ILS capital, but there are risks: Moody’s

Reinsurance companies have almost completed an evolution of their business models to enable them to coexist with alternative capital and insurance-linked securities (ILS), according to Moody's, but the rating agency noted that there are risks to this engagement. Having faced significant challenges from the "secular growth of alternative reinsurance capital" as read the full article →

Equity investors query reinsurer’s use of ILS and ESG quality: Autonomous’ Ritchie

Equity investors focused on the reinsurance sector question whether insurance-linked securities (ILS) deliver cost-of-capital benefits, while also finding it hard to consider reinsurers an ESG appropriate investment, Andrew Ritchie, Partner, Insurance Research at Autonomous Research LLP said today. Ritchie was participating in Munich Re's 13th annual insurance-linked securities (ILS) roundtable, which read the full article →

Investor appetite for cat bonds strong, rising for peak peril private ILS: Steiger, Twelve Capital

Appetite for insurance-linked securities (ILS) investments is rising according to Twelve Capital's Florian Steiger, who sees interest in catastrophe bonds as still strong despite recent tightening of spreads, while interest in peak peril private ILS and collateralised reinsurance is on the rise. Speaking with Artemis in a recent interview, Steiger, who read the full article →

Hannover Re forecasts moderate demand growth for ILS

This morning, German reinsurance giant Hannover Re noted the resurgent insurance-linked securities (ILS) market, highlighting that it has returned to growth after a few years where capital allocated to ILS and catastrophe bonds had declined a little. The reinsurance company noted that, "The market for insurance-linked securities (ILS) posted renewed growth read the full article →

Spread compression makes some cat bonds less attractive: Plenum’s Schmelzer

The high-levels of activity and investor interest in the catastrophe bond market has resulted in tightening of spreads for many issues this year so far, leading to some cat bonds becoming less attractive to invest in, as they no longer adequately compensate for the risk assumed, according to Dirk Schmelzer read the full article →