reinsurance

The global market for catastrophe bonds has the potential for another strong year in 2023, with a robust pipeline building and as much as $11 billion of issuance possible, if market conditions are conducive, according to Cory Anger of GC Securities.

Kuvare Holdings, a technology-enabled specialist in life and annuity insurance and reinsurance solutions, has become the latest company in this space to launch a sidecar-like venture, that will bring a complementary source of capital from third-parties to help it expand its underwriting business.

Recent winter storm Elliott, so the extreme cold, blizzards and severe winter extratropical storm that struck the United States from around December 21st to the 26th, is thought likely to cause a degree of deductible erosion to some aggregate catastrophe bonds.

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) investment fund manager, has announced a new key hire, taking former Elementum executive Benjamin Somers as its new Managing Director of Business Development.

The insurance-linked securities (ILS) market reacted very conservatively to hurricane Ian, with catastrophe bonds marked down heavily and that may have been caused by the fear over whether losses result from storm surge or flood, a common concern in the market, consultancy Lane Financial has explained.

Because of increased exposure and an adjustment to its catastrophe risk modelling approach, the Texas Windstorm Insurance Association (TWIA) could end up buying around 46% more in reinsurance limit for the 2023 hurricane season.

German reinsurance giant Hannover Re has brought the first private catastrophe bonds that we’ve learned of in 2023, with three Seaside Re cat bond lites totalling $32.5 million of risk capital issued, the latest, use of its Kaith Re transformer vehicle to come to light.

The strong potential returns on offer in reinsurance after the steep rate increases seen at the January 2023 renewals could soon entice new capital to enter the market, according to international broking group Howden.

The overall assets under management (AuM) of the main UCITS catastrophe bond funds as a group rose by almost $700 million during the fourth-quarter of 2022, as recovery of some cat bonds after hurricane Ian and fresh inflows helped the total increase 9% to reach $8.78 billion, a new year-end record high.

Likely in response to market conditions, as well as uncertainty over its 2022 reinsurance tower’s exposure to hurricane Ian, the National Flood Insurance Program’s (NFIP) traditional reinsurance tower has been renewed by FEMA at just $502.5 million in size for 2023, a more than 50% reduction on the prior year.