reinsurance

Specialist re/insurer Beazley said this morning that it aims to develop a “vibrant” cyber reinsurance market with the help of insurance-linked securities (ILS) investors, while also noting that the recent CrowdStrike IT outage has shown its cyber underwriting was resilient to such a loss event.

Global reinsurance giant Munich Re said this morning that it reduced the volume of business underwritten at the July 1st renewal season, holding the line on price and terms, while across the industry the company believes supply and demand for capital are in equilibrium still.

Having first secured an innovative cover with capital markets backing for its Central Fund back in 2021, the Lloyd’s market has renewed this in 2024 and this time the protection will run for a five-year term, while a chunk is again collateralised by a major investment bank.

In the insurance and reinsurance market, catastrophe bond issuance levels and activity are becoming a key focus for any investor discussions regarding industry capacity and price, according to equity analysts at Goldman Sachs.

For the first-half of 2024, White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar, that supports its re/insurer subsidiary Ark, generated the company higher pre-tax income, at $18 million.

At Hiscox Group, as the mix of third-party capital adjusts with new inflows into insurance-linked securities (ILS) structures and continued planned outflows as money gets returned to investors, Hiscox CEO Aki Hussain said today that this won’t affect the firm’s underwriting risk appetite.

Reinsurance firm Swiss Re has estimated that global insured natural catastrophe losses for the first-half of 2024 were US $60 billion, which it says was 62% above the 10-year average, while man-made disaster losses were $6 billion for the period, which as a total is up from $65 billion for H1 2023.

The Texas Windstorm Insurance Association (TWIA) has said that with it estimating losses of $400 million from hurricane Beryl making landfall in the state, it now believes most if not all of its Catastrophe Reserve Trust Fund (CRTF) may be eroded, something that will have implications for its funding and maybe for its reinsurance buying.

Heritage Insurance Holdings, Inc. is ready to begin selectively growing its property insurance business back into Florida, as the legislative reforms have taken positive effect and reinsurance markets are now more stable, CEO Ernie Garateix has explained.

Hiscox ILS, the dedicated insurance-linked securities (ILS) management arm of the global re/insurer, has successfully raised gross inflows amounting to $300 million in the first-half of 2024, with capital from new and existing investors flowing to its collateralized reinsurance sidecar and ILS funds.