Santam passes most of $257m flood loss to reinsurers
South African insurer Santam has reported its results for the first six months of 2022, which include a gross exposure of R4.4 billion (USD 257 million) to flooding in the KwaZulu-Natal province. However, the company’s net impact from the floods was limited to R566 million (USD 33 million) thanks to its reinsurance program, meaning reinsurers […]
Asia-Pacific reinsurers can use ILS capital to compete with global peers: AM Best
Reinsurance companies in the Asia Pacific region can leverage insurance-linked securities (ILS) and alternative capital to capture hardening market opportunities and become more competitive with their global peers, rating agency AM Best has advised. Alternative capital and insurance-linked securities (ILS) can help to make regional reinsurers more competitive in their home countries and also globally, […]
Climate change stimulates catastrophe bond market development: Fitch
In a new report, rating agency Fitch states that climate change is stimulating the development of the catastrophe bond market, as demand for protection rises and the capital markets offers an efficient source of reinsurance against climate-linked catastrophe events. While the reinsurance market is facing challenges from macro-economic factors such as inflation, a persistent threat […]
Cat bond spreads widened in the secondary market as H1 drew to a close: Aon
Spreads in the secondary market for catastrophe bonds began to widen towards the levels seen for primary cat bond transactions as the first-half of the year drew to a close, broker-dealer Aon Securities has said. Commenting on secondary cat bond market conditions through the second-quarter of 2022, Aon Securities, the investment banking and broker-dealer unit […]
Catastrophe bond market positioned for next stage of growth: Swiss Re
The trend of increased new issuance volume in catastrophe bonds is expected to continue, with positive growth of the cat bond market expected as a result, according to Swiss Re Capital Markets. The capital markets and broker-dealer entity of the Swiss Re reinsurance group expects that insurance-linked securities (ILS) in catastrophe bond form will continue […]
Reinsurance – Defensive, with a cycle hardening tailwind: Goldman Sachs
Equity analysts from investment bank Goldman Sachs have, perhaps unwittingly, laid out a thesis for insurance-linked securities (ILS) investing in their latest research report on the global reinsurance market, which they laud for its defensive investment properties and note has very positive tailwinds at this time. The analysts are commenting on the prospects for the […]
ILS funds free COVID trapped capital through commutations: AM Best
Insurance-linked securities (ILS) fund managers have been working to free trapped capital related to possible COVID pandemic related losses in European reinsurance contracts, with commutations being pursued, AM Best has reported. In a wide-ranging ILS market report from the rating agency, one of the most interesting insights is that AM Best believes efforts to release […]
Our industry needs to look at hurricanes from an evolved perspective: Swiss Re
A recent Risk Perspective blog from Swiss Re’s Mohit Pande has outlined the hurricane risks that the industry and economy currently face. According to CoreLogic, nearly 33 million homes on or near the Atlantic and Gulf coasts are at risk of hurricane-force wind damage, the estimated cost to replace them is $10.5 trillion. The impact […]
Cyber ILS market growth to be slow, as investors still hesitant: S&P
Many insurance-linked securities (ILS) investors remain hesitant about allocating capital to cyber insurance and reinsurance risks, which leads rating agency S&P Global to suggest growth of a cyber ILS market will likely be slow in the short to medium term. With market conditions for insurance-linked securities (ILS) investors seen as improving after several difficult years […]
Era of catastrophe-focused traditional reinsurers may be over: AM Best
The era of catastrophe-focused traditional reinsurers appears to be over, rating agency AM Best announced today, as the pulling-back continues in some quarters, while the addition of more diversifying lines of business accelerates among once cat-specialist US and Bermuda based reinsurance firms. AM Best explained in a recent report that the catastrophe exposed regions of […]