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 […]
RenRe grows Medici 25% in attractive cat bond market: CEO
For global reinsurance firm RenaissanceRe, the Medici catastrophe bond focused investment fund strategy has been one of its sources of growth in third-party capital assets under management in recent years, a trend that continued in 2022. Like many other managers of third-party reinsurance capital assets, or insurance-linked securities (ILS) strategies, RenaissanceRe saw outflows from some […]
Travelers pleased with execution of latest cat bond: CFO Frey
US property & casualty insurance giant The Travelers Companies was “pleased” with the reception its latest catastrophe bond received in the market, as it increased the amount of reinsurance cover it has from capital market cat bond investors during its latest renewal. Travelers secured $575 million of multi-year collateralized property catastrophe reinsurance with the Long […]
Cat bonds one of the most prominent innovations in sustainable finance: IMF
According to a staff climate paper published by the International Monetary Fund (IMF), catastrophe bonds are one of “the most prominent innovations in the field of sustainable finance in the last 15 years,” but the organisation believes more use of them is needed to cover burgeoning catastrophe and climate risks. Catastrophe bonds sit alongside green […]
Munich Re: Natural disaster review for first half of 2022
In the first half of 2022, natural disasters caused overall losses of US$ 65bn, with slightly more than half of these insured Extreme multi-day rainfall and severe flooding in Australia constituted the main loss burden for the insurance industry of at least US$ 3.7bn US once again country with highest weather-related losses Number of fatalities […]
Cat models don’t properly reflect climate change: RenRe CEO O’Donnell
In comments made this afternoon during the second-quarter earnings call of Bermuda based reinsurance and third-party capital management specialist RenaissanceRe, the companies CEO Kevin O’Donnell said the catastrophe modelling vendors are failing to robustly capture the effects of climate change. O’Donnell’s comments suggest a lack of confidence in the commercially available vendor catastrophe models at […]
Global Insurance-Linked Securities Market Outlook
The Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again. This milestone was achieved in spite of a challenging year of catastrophe losses and with most market participants working from home. The ILS market continues to demonstrate its resilience with bonds issued in […]
Crypto crash may push re/insurers to add new exclusions
The cryptocurrency price crash could accelerate the process of insurers rewriting policies to reduce potential exposure, according to the law firm RPC. The company says insurers are likely to review or amend policy wordings to ensure they are not indirectly insuring losses arising from the activity of clients who may have exposure to the crypto market. […]
No oversupply of ILS capital expected, as returns come into focus: JPM
There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan. In a new report, equity analysts from investment bank J.P. Morgan explain that they regularly […]