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, […]
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 […]
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 […]
African Risk Capacity (ARC) seeks cost-efficiency and capacity
The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and now other entities in Africa, wants to become the continent’s disaster risk financing provider of choice, but increasing its capacity and lowering-costs for country members remains key. Efficiency has always been important for the African Risk Capacity (ARC), particularly in […]
Traditional reinsurance capital to shrink, ILS to grow in 2022: AM Best & GC
According to the latest estimate and forecast for dedicated reinsurance capital from rating agency AM Best and broker Guy Carpenter, overall reinsurance market dedicated capital is expected to shrink, as traditional capacity falls, but ILS or third-party capital rises. While reinsurance capital remains plentiful, according to AM Best’s latest market report, the current forecast is […]
Capacity is King, as reinsurance becomes precious: Aon
When reinsurance capacity becomes scarce, or less available, as has been seen in Florida and at the mid-year renewals, capacity becomes “King” and those with availability of it are no doubt very popular. Aon’s Reinsurance Solutions described the mid-year renewal dynamics very well in a recent report, saying that capacity is King in Florida, while […]
Lloyd’s to announce significant London Bridge 2 ILS expansion plan
Lloyd’s of London will today announce a significant expansion of its London Bridge insurance-linked securities (ILS) platform, with a plan to welcome more capital, new types of reinsurance transactions and make the transfer of different kinds of risks to capital market investors simpler. Dubbed London Bridge 2, according to the Financial Times that was given […]