reinsurance

Catastrophe bond investment funds structured in the UCITS format have reported a record start to the year, with the average return across the leading UCITS cat bond funds reaching 1.77% so far in 2023.

In order for capital to flow more meaningfully back into insurance-linked securities (ILS), John Dacey, the CFO of global reinsurance firm Swiss Re, said that the industry needs to better address investor concerns over climate change impacts to nat cat risk.

The CATCo retrocessional reinsurance investment portfolio has experienced additional favourable development in the final quarter of 2022, with the net asset values (NAV’s) increasing again as side pocket loss reserves continue to prove to have been set conservatively.

Here are the ten most popular news articles, week ending February 19th 2023, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Global reinsurance company Ariel Re has now secured its new catastrophe bond, the Titania Re Ltd. (Series 2023-1) issuance, to provide a slightly upsized $125 million of retro reinsurance cover, while pricing settled at the low-end of already reduced pricing.

Third-party capital investors allocated to specialty insurance and reinsurance player Brit Ltd’s collateralised reinsurance underwriting vehicle and ILS fund brand Sussex Capital appear to have profited in 2022, as the company delivered positive income to them for the year.

Global reinsurance company Swiss Re grew its collateralized reinsurance sidecar and insurance-linked securities (ILS) fund assets under management by 29% in 2022, lifting the third-party investor total to $2.9 billion.

In a major deal that is similarly structured to the landmark Lloyd’s Central Fund reinsurance arrangement from 2021, legacy acquisition focused Lloyd’s specialist underwriter RiverStone International, has secured $305 million of multi-year collateralised reinsurance, with funding led by investment bank JP Morgan and transacted via a White Rock cell structure.

Australian primary insurer and global re/insurance group QBE is set to retain more risk through 2023, as its reinsurance renewal saw the resulting coverage shrink, with the catastrophe aggregate smaller, certain layers non-renewed and all at higher costs.

For global reinsurance firm Swiss Re, a reported 18% average increase in property and casualty prices for business underwritten at the key January 2023 renewals more than offset higher loss assumptions of 13%, while the company has also been dealing with inflation.