reinsurance

The government of Hong Kong is proposing a two year extension to its Pilot ILS Grant Scheme, which it hopes will help to continue the development of its insurance‑linked securities (ILS) offering and attract more issuers to locate catastrophe bond and ILS arrangements there.

Direct-to-consumer and fast-growing insurtech company Kin Insurance has returned to the catastrophe bond market to sponsor its second issuance, seeking $100 million or more in Florida named storm protection from a Hestia Re Ltd. (Series 2023-1) transaction.

Swiss-headquartered fintech Cerchia is making progress as it looks to raise around US $200 million from investors and lenders for deployment to a new ILW structure that it believes can help reduce the risk of trapped capital.

The retrocession program of global reinsurance giant Munich Re has shrunk slightly for 2023 as the company navigated the challenging market environment, while still securing $513 million of collateralised capacity for its quota share sidecar vehicles.

The new FloodSmart Re Ltd. (Series 2023-1) catastrophe bond that is being issued for the U.S. Federal Emergency Management Agency (FEMA) entity the National Flood Insurance Program (NFIP), could upsize to $275 million in size, while the pricing has been reduced to the low-end of initial guidance.

Catastrophe risk modelling firm Moody’s RMS has said today that it anticipates the earthquakes that struck Turkey on Monday 6th February are likely to cause over US $25 billion in economic losses and over $5 billion in losses for the insurance and reinsurance market.

In announcing its full-year 2022 results this morning, global reinsurance giant Munich Re has said that prices at the key Janaury 2023 renewal season more than compensated for the sometimes significantly higher loss estimates, caused by inflation and other loss related trends.

Having successfully expanded its retrocessional reinsurance program at the January 2023 renewals, Bermuda-headquartered reinsurance company Conduit Re is keeping all retro options on the table, with catastrophe bonds one instrument it is keeping an eye on, according to Trevor Carvey, Chief Executive Officer.

At the January renewals, global reinsurance firm Hannover Re capitalised on its long-standing relationships with investors to grow its K-Cession quota share sidecar structure to a record size, ultimately helping the company do more to support its ceding clients demand for natural catastrophe capacity.

The current post-Katrina-like hard market is an “exciting time” for insurance-linked securities (ILS) managers who see profits in the future amid high demand for capacity, suggests Emmanuel Modu, managing director of ILS at AM Best.