reinsurance

The recent devastating earthquakes in Turkey are estimated as likely to cause an insurance and reinsurance market loss of around US $2.4 billion by catastrophe risk modeller Karen Clark & Company.

Catastrophe bonds and insurance-linked securities (ILS) offer investors a compelling entry or reinforcement point right now, given the asset classes inherent features and higher spreads, but it’s still important to be selective, according to Francois Divet, Head of ILS at AXA IM Alts.

RenaissanceRe, the global reinsurance firm and third-party capital management specialist, saw its third-party capital assets under management dedicated to property and casualty business rise by $610 million since September 30th 2022, with the total reaching a new high at January 1st 2023.

AlphaCat Managers, the insurance-linked securities (ILS) and collateralized reinsurance investment manager operated by global insurance giant AIG, maintained a stable level of assets under management (AuM) at $3.3 billion at the end of 2022, while there are also signs of some recovery after hurricane Ian.

The insurance-linked securities (ILS) and reinsurance market environment in 2023 will continue to favour the catastrophe bond product, with this industry segment expected to see a “disproportionate share of inflows”, Bill Dubinsky, CEO of Gallagher Securities told Artemis.

Artemis has learned that Langhorne Re, the third-party capitalised life and annuity reinsurance joint venture launched by RenaissanceRe (RenRe) and life focused reinsurer Reinsurance Group of America (RGA) back in 2018, is being wound down after its capital commitments expired without renewal.

The market for catastrophe bonds is expected to see increasing levels of issuance and the hardening of reinsurance rates is one factor that could drive the market in 2023 and beyond, alongside a general uptick as exposures rise and large insurance and reinsurance firms continue to source risk capital from institutional markets, DBRS Morningstar has […]

The staff of the Texas Windstorm Insurance Association (TWIA) are working with reinsurance broker Gallagher Re and its capital markets unit Gallagher Securities, to reset its existing $700 million of catastrophe bonds, renew a soon to mature $400 million cat bond deal, and begin discussions with reinsurers about its renewal needs.

While new capital was seen to flow to some retrocessional reinsurance opportunities around the January 2023 renewals, the pace is not keeping up with outflows or demand for protection, Aon’s Reinsurance Solutions explained recently.

Verisk Extreme Event Solutions, formerly AIR Worldwide, has estimated that economic losses from the devastating earthquakes that struck Turkey will reach above US $20 billion, while the insurance and reinsurance industry faces a bill of above US $1 billion.