reinsurance

The widening of spreads in the catastrophe bond market drove underperformance across much of the insurance-linked securities (ILS) market in May 2022, with funds invested into private ILS and collateralized reinsurance structures faring best.

Broking group WTW, working with the Mesoamerican Reef Fund and InsuResilience Solutions Fund, has announced a renewal and expansion of the innovative parametric hurricane insurance program to protect the coral reef, while adding additional capacity from reinsurance firm Munich Re.

Executives at Munich Re explained that they have been seeing a continued hardening of reinsurance rates and that they believe this could last another 24 months, but are adjusting their exposures to suit the market environment, according to analysts from Goldman Sachs.

The government of the Philippines is said to be looking at sources of reinsurance capital to underpin the Philippine Crop Insurance Corporation (PCIC) scheme, while parametric triggers are also being explored to make the coverage more widely available and responsive.

The Insurance Council of Australia (ICA) has now declared a ‘significant event’ for the developing severe flooding in Sydney and the surrounding region of the country, as now more than 50,000 people are under evacuation orders.

The global market for catastrophe bonds expanded by almost 2% during the second-quarter of 2022, as demand from sponsors drove strong issuance and helped to grow the outstanding cat bond market to $38.2 billion at June 30th 2022.

RenaissanceRe believes the work it has put into building out its casualty and specialty reinsurance lines, as well as its third-party reinsurance capital management expertise, mean it would be hard for competitors to replicate its new joint-venture vehicle Fontana, with CEO Kevin O’Donnell saying the company has built a “sustainable moat” around the strategy.

After experiencing some “difficulties” throughout the earlier parts of the year, the ILS and alternative capital market largely “recovered its poise” at the July renewal period, says James Vickers, Chairman International, Reinsurance, at Gallagher Re.

Isosceles Insurance Ltd., the Bermuda-domiciled private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has completed the issuance of three new series of cat bond notes, totalling $90.5 million of capital markets backed capacity secured for clients.

The UBS (UK) Pension and Life Assurance Scheme has added another £500 million to an in-force longevity swap arrangement, expanding it to provide £1.9 billion of protection.