Third-party reinsurance capital news

While many have expressed dismay at the depressed state of reinsurance rates, following the major hurricane and catastrophe losses of 2017, for some the modest price increases achieved are deemed sufficient to drive higher returns, both in ILS and for some traditional reinsurers as well.

Underwriting agency Pioneer Underwriting has hired James Sharpington, formerly of broker BMS, as an Underwriter for its Pioneer CAT property catastrophe team, effective July 2018.

The new insurance-linked securities (ILS) transaction sponsored by mortgage insurance specialist NMI Holdings, Inc., which is the firms second mortgage ILS deal, a $264.55 million Oaktown Re II Ltd. transaction that we first reported on yesterday, has now been priced.

Mortgage insurance specialist NMI Holdings, Inc. is returning to the insurance-linked securities (ILS) markets for a second slice of collateralized mortgage reinsurance cover with its second mortgage ILS deal, a $264.55 million Oaktown Re II Ltd. transaction.

American International Group, Inc. (AIG), one of the world’s largest insurers, will now also benefit from a specialist reinsurance arm and its own insurance-linked securities (ILS) fund manager, as it closes on the Validus acquisition so adds the AlphaCat Managers ILS unit to its operations.

The President of ISO, a provider of information about property & casualty insurance risk and part of the wider Verisk group, highlighted that insurance-linked securities (ILS) and capital markets backed reinsurance coverage now constitute part of P&C insurers “sophisticated protection system.”

U.S. primary insurer Federated National Holding Company (FNHC) is once again a good example of the important role that collateralized reinsurance markets including ILS fund managers are playing in the protection arrangements of the primary market.

Inga Beale, the Chief Executive Officer of the Lloyd’s insurance and reinsurance market, is stepping down from the position in 2019 and the market said today that the search for a successor is underway.

U.S. primary insurance giant Liberty Mutual has now tapped the capital markets for almost $700 million of collateralized reinsurance capacity through the firms Bermuda segregated accounts reinsurance sidecar vehicle, Limestone Re Ltd., according to James Slaughter.

Analysts at Deutsche Bank recently concluded that at least stable pricing, or better, will be required for one of the major reinsurance firms to hit its long-term targets, something which applies to the rest of the industry as well.