reinsurance

In property insurance, rates are failing to keep up with inflation, according to global reinsurance firm Swiss Re, who estimates that property claims will rise by between 6% and 13% on the back of inflation, which is higher than price increases that were reported at 5% to 8%.

American Integrity Insurance Company of Florida, Inc. continues to pursue a new catastrophe bond and the $100 million target for the Integrity Re Ltd. (Series 2023-1) issuance hasn’t changed, but we’re told the price guidance has been narrowed and shifted higher, while terms related to the bond reset mechanism have been clarified.

Kelvin Re Limited, the previously ILS capital backed Guernsey based reinsurance company, is not expected to form a part of its new owner TD Bank’s long-term plans, which has led rating agency AM Best to be cautious on the outlook for the company.

A first estimate for the insurance and reinsurance market industry loss from the recent Kahramanmaras Earthquake Sequence that struck Turkey and Syria in February has been pegged at US $3.5 billion by PERILS AG.

Florida’s Citizens Property Insurance Corporation has now finalised the pricing on its first industry loss trigger catastrophe bond and the Lightning Re Ltd. (Series 2023-1) issuance has secured the insurer $500 million of capital markets backed reinsurance at an 11% risk interest spread.

Porch Group, Inc., a software company focused on services to homeowners including insurance, has launched a reciprocal insurance exchange and sees the structure as a strategy that can help reduce the impact of the current hard reinsurance market.

Slide Insurance Company, the full-stack homeowners property insurtech founded by former Heritage CEO Bruce Lucas, has entered the catastrophe bond market for the first time, seeking $100 million in named storm reinsurance protection through a Purple Re Ltd. (Series 2023-1) transaction.

The “denominator effect” and investor rebalancing across asset classes has driven some of the biggest challenges for the insurance-linked securities (ILS) market in recent months, Chris Parry, Global Head of Capital Partners at RenaissanceRe, told us in our latest Artemis Live interview.

The insurance-linked securities (ILS) market is seen as at a crossroads in the wake of hurricane Ian, although ILS capacity has still expanded and the catastrophe bond market is seen as the best positioned segment, rating agency AM Best has said.

The Andover Companies, a large mutual insurance group in the Northeast US, has increased the target size for its debut Locke Tavern Re Ltd. (Series 2023-1) catastrophe bond issuance, with now up to $175 million of reinsurance sought from the deal.