Reinsurance sidecars news

Insurance and reinsurance broker Aon has offered its view on the recent winter storm activity in the United States, saying that an expected “hurricane-level” of claims from the winter storm “will translate to payouts well into the billions of dollars.”

Catastrophe risk modeller AIR Worldwide has warned that recent winter storm Uri and associated severe winter weather could result in an insurance and reinsurance industry loss that is “well in excess” of $10 billion.

Global reinsurance player Munich Re had some positive words for the insurance-linked securities (ILS) market, suggesting that alternative capital sources in reinsurance are presenting “disciplined” competition at this time.

Palomar Insurance Holdings, the speciality California-headquartered insurer that provides largely catastrophe exposed property products, has said that it expects its reinsurance program to respond to the losses it will face from winter storm Uri’s impacts in Texas.

Property and casualty insurers in the United States are facing record levels of first-quarter catastrophe losses due to the severe winter weather associated with winter storm Uri, rating agency Fitch has said.

Winter storm Uri is destined to become a record insurance and reinsurance market loss for a winter weather event in the United States and while the impacts may be in the double-digit billions of dollars, the ILS market may be protected from too significant a share.

The ongoing renegotiation and fine tuning of terms and conditions related to insurance-linked securities (ILS) capital deployment continued at the key January reinsurance renewals, with ILS fund managers gaining some more ground.

Hong Kong headquartered global reinsurer Peak Reinsurance Company Limited (Peak Re) has now revealed that it successfully renewed its Lion Rock Re fully collateralised reinsurance sidecar at a larger size of $107 million for 2021.

Athene Holding Ltd., the life and retirement reinsurance company majority owned by investor and private equity specialist Apollo Global, saw another healthy quarter of management fee income from its Athene Co-Invest Reinsurance Affiliate (ACRA) sidecar vehicle in Q4 2020.

Specialty insurance and reinsurance player Brit Ltd. successfully expanded its insurance-linked securities (ILS) management activities during 2020, with its Sussex Capital ILS management and collateralised reinsurance platform increasing its assets under management to $525 million.