reinsurance

Rates-on-line for non-marine catastrophe retrocessional reinsurance are now up approximately 165% on their 2017 lows, analysts at Jefferies have pointed out using data reported by broking group Howden.

The acquisition of hybrid P&C program, fronting and risk transformation company, Transverse Insurance Group, by MS&AD Holdings, through its Mitsui Sumitomo Insurance unit, has been completed, with the pair now targeting growth through this relationship.

Stone Ridge Asset Management’s mutual insurance-linked securities (ILS) fund that is structured in an interval style has delivered a positive annual return in the period to October 31st 2022, despite its broad exposure to hurricane Ian.

Insurance-linked securities (ILS) and catastrophe bond funds gained 0.87% for the month of November 2022, with continued recovery among some ILS funds after hurricane Ian, especially for those that had fallen most significantly the month that storm occurred.

Palomar Insurance Holdings, the speciality California-headquartered insurer that offers largely catastrophe exposed property products, has renewed some of its earthquake reinsurance, buying incremental limit as well, despite what its CEO terms an “unquestionably” hard reinsurance market.

The catastrophe bond market saw a lower than average $1.6 billion of issuance in the fourth-quarter of 2022, but the full-year total still reached $10.5 billion, while investors secured much higher pricing as cat bond spreads rose amid the hardening of reinsurance rates, Artemis’ latest quarterly report shows.

The US state of California is already facing flooding after torrential rains triggered by a first atmospheric river event that has driven storms and rainfall in from the Pacific, but forecasters are saying another “brutal” period of wind and rain is expected to begin from Wednesday that could exacerbate the potential insurance market loss situation.

Towards the end of the year, as the challenging January 2023 reinsurance renewal season neared its completion, lower than expected loss estimates related to hurricane Ian eased some concerns related to trapped ILS capital and this assisted in clearing retrocession placements, broker Gallagher Re said today.

There are expected to be an increasing number of partnerships on cyber risk underwriting with insurance-linked securities (ILS) fund managers in 2023, according to cyber modelling specialist CyberCube.

Risk-adjusted non-marine catastrophe retrocession excess-of-loss rates-on-line rose by 50% at the January 2023 renewals, while global property catastrophe reinsurance rates rose 37%, according to international broking group Howden.